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Strategy for Selling Luxury Apartment

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					Serviced Visitor Accommodation in
Lincolnshire

Development Strategy & Action Plan    FINAL
April 2009                           DRAFT
Locum Consulting
9 Marylebone Lane
London
W1U 1HL
United Kingdom


Tel    +44 (0)20 7487 1799
Fax    +44 (0)20 7487 1797
Info@locumconsulting.com
www.locumconsulting.com


Date: 18 August 2011
Job: J0895
File: j0895 lincolnshire hotel development strategy 310309.doc




All information, analysis and recommendations made for clients by Locum Consulting are made in
good faith and represent Locum’s professional judgement on the basis of information obtained from
the client and elsewhere during the course of the assignment. However, since the achievement of
recommendations, forecasts and valuations depends on factors outside Locum’s control, no
statement made by Locum may be deemed in any circumstances to be a representation, undertaking
or warranty, and Locum cannot accept any liability should such statements prove to be inaccurate
or based on incorrect premises. In particular, and without limiting the generality of the foregoing,
any projections, financial and otherwise, in this report are intended only to illustrate particular
points of argument and do not constitute forecasts of actual performance.

Locum Consulting is the trading name of Locum Destination Consulting Ltd.
Registered in England No. 3801514
     J0895 Lincolnshire Hotel Development Strategy



Contents

1.   Introduction                                                                              7

2.   Summary of Action Plan                                                                    8
     2.1     Hotel and Pub Excellence Programme                                                8
     2.2     Planning and Economic Development Initiatives                                     9
     2.3     Planning and Economic Development Initiative specifically related to hotels       9
     2.4     Timing                                                                           11

3.   National Trends and the Implications for Lincolnshire                                    12
     3.1     Going up: Staying in Hotels                                                      12
     3.2     Going Up: Brands                                                                 13
     3.3     Going up: City Centre Locations                                                  15
     3.4     Going Up: Limited Service “Budget” Hotels                                        18
     3.5     Going up: Self-Catering for Family Holidays                                      19
     3.6     Going Up: Apart-hotels                                                           20
     3.7     Going Up: Mixed Use Resorts                                                      22
     3.8     Going Up: “Boutique” Hotels                                                      23
     3.9     Going Up: Spas                                                                   26
     3.10    Going Up: Concern for Sustainability                                             31
     3.11    Going Up: Information and Bookings via the Internet                              33
     3.12    Going Up: High Quality B&Bs, Restaurants with Rooms and Gastro Pubs              34
     3.13    Going Down: The Economy                                                          36
     3.14    Going Down: Independent 2 and 3 Star Hotels                                      37
     3.15    Going Down: Investment in Country House Hotels                                   37

4.   Overview of Current Provision and Gaps across the County                                 39

5.   Greater Lincoln                                                                          46
     5.1     Current Provision                                                                46
     5.2     Strategic Issues                                                                 47
     5.3     Development opportunities                                                        48
     5.4     Recommended Actions                                                              49

6.   North West (West Lindsey)                                                                51
     6.1     Current provision                                                                51
     6.2     Strategic issues                                                                 52
     6.3     Development opportunities                                                        53
     6.4     Recommended Actions                                                              55

7.   Wolds                                                                                    56
     7.1     Current provision                                                                56
     7.2     Strategic issues                                                                 57
     7.3     Development opportunities                                                        61
     7.4     Recommended Actions                                                              63

8.   The Coast                                                                                65



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      8.1     Current provision                                               65
      8.2     Strategic issues                                                66
      8.3     Development opportunities                                       70
      8.4     Recommended Actions                                             70

9.    The South                                                               72
      9.1     Current provision                                               72
      9.2     Strategic Issues                                                74
      9.3     Development Opportunities                                       75
      9.4     Recommended Actions                                             84


Appendices

1.    Using this Report                                                       86

2.    Major Hotel Operators and their potential for Lincolnshire              88
      2.1     A B Hotels                                                      88
      2.2     ABode Hotels                                                    88
      2.3     Apex                                                            88
      2.4     Accor                                                           89
      2.5     Arora International Ltd                                         89
      2.6     Aston Hotels Ltd                                                90
      2.7     B D L Hotels Ltd                                                90
      2.8     Ballymore Properties Ltd                                        90
      2.9     Bannatyne Hotels                                                91
      2.10    Beck Conroy Consulting                                          91
      2.11    Bespoke Hotels                                                  91
      2.12    Blackstone Group                                                91
      2.13    Butterfly Hotels Ltd                                            92
      2.14    Campanile (UK) Ltd                                              92
      2.15    Carillion Plc                                                   92
      2.16    Cedar Court Hotels                                              92
      2.17    Centre Parcs UK Group                                           93
      2.18    Centre Island Hotels                                            93
      2.19    Chardon Management Ltd                                          93
      2.20    City Inn Ltd                                                    94
      2.21    Clayton Hotels Ltd                                              94
      2.22    Corinthia Hotels International                                  94
      2.23    Crerar Hotels Ltd                                               94
      2.24    Carlson (Park Plaza brand)                                      95
      2.25    Cendant – Wyndham Hotels                                        95
      2.26    City Inn                                                        95
      2.27    Dakota Hotels                                                   96
      2.28    Delancey Estates                                                96
      2.29    Doubletree By Hilton                                            96
      2.30    De Vere: Village Hotels                                         97
      2.31    Eclipse Hotels                                                  97
      2.32    Express By Holiday Inn                                          97



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2.33    Fitzpatrick Hotel Group                                         98
2.34    Folio Hotels                                                    98
2.35    Four Pillar Hotels                                              98
2.36    Future Inns Canada                                              99
2.37    G B Building Solutions Ltd                                      99
2.38    Grange Hotels Ltd                                               99
2.39    Guestinvest                                                     99
2.40    Heritage Group                                                 100
2.41    Hilton Hotels.                                                 100
2.42    Intercontinental Hotels                                        101
2.43    Jarvis Hotels Plc                                              101
2.44    Jumeirah International                                         101
2.45    Jurys Doyle                                                    102
2.46    Kennedy Group                                                  102
2.47    Kew Green Hotels Ltd                                           102
2.48    Legacy Hotels                                                  103
2.49    MacDonald Hotels and Resorts                                   103
2.50    Malmaison/Hotel du Vin                                         103
2.51    Marriott International                                         104
2.52    Marstons Inns & Taverns                                        104
2.53    Maybourne Group                                                105
2.54    McAleer & Rushe Group                                          105
2.55    Menzies Hotels                                                 105
2.56    Millennium Copthorne:                                          105
2.57    Morethanhotels                                                 106
2.58    Niche Hotels Ltd                                               106
2.59    Pantin Hotels                                                  106
2.60    Park Inn                                                       106
2.61    Peel Holdings Ltd                                              107
2.62    Prem Group                                                     107
2.63    Premier Inn                                                    107
2.64    Principal Hayley Hotels                                        107
2.65    Q Hotels                                                       108
2.66    Radisson Edwardian                                             108
2.67    Radisson SAS                                                   108
2.68    Real Hotel Company                                             109
2.69    Regency Hotel Group                                            109
2.70    Rezidor/Carlson (Radisson SAS)                                 109
2.71    Shiva Hotels                                                   110
2.72    Sleeperz Hotels Ltd                                            110
2.73    Somerston Hotels Ltd                                           110
2.74    Splendid Hotel Group                                           111
2.75    Starboard Hotels                                               111
2.76    Starwood Hotels and Resorts                                    111
2.77    Thistle Hotels                                                 112
2.78    Travelodge                                                     112




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     2.79    Urban Splash                                                   112
     2.80    Von Essen Hotels                                               112
     2.81    West Hotels                                                    113
     2.82    Willow Street Hotels                                           113
     2.83    Yianis Group                                                   113

3.   Space Requirements for Hotels                                          114




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1.   Introduction
     Locum Consulting has been commissioned by Lincolnshire Tourism, on behalf of Invest
     Lincolnshire and the Greater Lincoln Partnership and six district councils in the county, to
     produce a plan for the development of the serviced accommodation offer in Lincolnshire.

     Locum has produced three outputs from this work:

     •    Development Strategy and Action Plan (this report) – this is intended to be the main
          document to be used by those stakeholders who are endeavouring to plan for and
          encourage hotel development in the county.

     •    Summary Report – this is for the benefit of the wider range of stakeholders with an
          interest in the sector and what has been recommended.

     •    Market Overview – this is intended as material to be used to provide potential
          investors with an overview of the market conditions, the current provision and some
          of the opportunities.

     This report contains:

     •    An overview of national trends and how they impact on Lincolnshire. This includes
          case studies of types of hotel that Lincolnshire might seek to promote the
          development of (there are others in other parts of the report).

     •    An assessment of the current provision across the county and in different parts of it,
          how it has been changing, and what the key development opportunities seem to be in
          different parts of the county.

     •    An action plan.

     •    A list of hotel companies that are known to be active in the UK currently.

     The Summary Report forms the executive summary to this report and has not been
     repeated here.




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2.    Summary of Action Plan
      This report essentially deals with two issues – the type of development that the county
      could benefit from and for which there could be demand, and the locations where that
      opportunity might take place. Sections 3-4 deals concentrates largely on the first of those,
      and Sections 5-9 deal with the second. They are each cross-related to the other. Each
      section has suggested actions. This section summarises them.



2.1   Hotel and Pub Excellence Programme
      The core recommendation for short term intervention by the public sector is to establish a
      scheme that is aimed at helping independent proprietors of hotels, guest houses and pubs
      that potentially could have rooms, to achieve excellence.

      Our suggestion is that it takes the form of a small group of experts, perhaps covering
      interior design, food, business planning and sustainability, with an allocated number of
      days that they can spend providing advice. Their time would be provided to operators that
      are interested and committed to making investment to implement advice (perhaps
      supported by some grant funding). The vision is that these experts would truly be experts
      i.e. they would be professionals with a demonstrable track record of excellence and
      imagination.

      There could be a competitive process in allocating the expert time (and associated grant
      funding). Operators could be invited to submit an expression of interest. Those who do
      could be visited by the panel, who could talk to them, find out their aspirations and give
      them some guidance. The panel could then select who the potential beneficiaries that
      they believe have the most potential.

      The aim in the initial instance could perhaps be to guide intervention in:

      •    Large hotel (+30 rooms)

      •    Small hotel (-30 rooms)

      •    Guest house

      •    Addition of rooms to a pub.

      •    Creation of a small apart-hotel in a rural area or market town.

      •    Caravan park.

      The aim would be to try in particular to focus on initiatives where potential opportunity
      has been identified in this report, for example a small apart-hotel in the Fens, a ―quirky
      caravan park‖ at Ingoldmells, a gastro pub with rooms in Louth, a spa hotel in Woodhall
      Spa, a smart townhouse style hotel with spa in Stamford.

      Cumbria Tourism has considerable experience of programmes such as this and we suggest
      talking to them about their experiences.




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2.2   Planning and Economic Development Initiatives
      Various destination development initiatives are suggested in this report. Hotel
      development would be a feature of each of them, but they would have much greater
      significance.


      Figure 1: Major Proposed Strategic Work

      Stamford                  Engage the community in a visioning exercise aimed at considering
                                how the town can make the most of its ―specialness‖ as, possibly, the
                                finest market town in the country. Consideration of appropriate
                                accommodation development opportunities should be part of this.

      Ingoldmells               Strategy for bringing the key operators together to create a more
                                integrated and well promoted family resort, to be positioned as the
                                primary family resort in the country. A key element of this would be
                                encouraging the development of a proposed resort hotel at Butlins.

      Skegness                  Prepare a strategy for how it can be repositioned as an attractive
                                ―town by the sea‖, and what intervention could be made on the
                                seafront to facilitate the transition. Part of that would be
                                consideration of the possibility of a landmark spa hotel and casino.
                                This is a possible signature project which might seek public
                                funding.

                                Develop a planning policy, possibly with intervention via a Housing
                                Trust or other vehicle, for assisting transition of non-viable visitor
                                accommodation into suitable alternatives such as family housing.

      Louth                     Engage the community in a ―visioning‖ exercise for what the town
                                should be like, followed by development of a town centre masterplan.

      There are, obviously, many other places that might benefit from similar ―destination
      vision‖ type exercises – Horncastle, Boston, Spalding, and even Uphill Lincoln for example.



2.3   Planning and Economic Development Initiative specifically related to
      hotels
      In addition, the report proposes a number of specific initiatives to try and nurture
      development of specific sites. These are likely to need leadership by economic
      development officers and strategic planning officers of the local authorities concerned.
      Obviously, there is a limit to what the public sector can do, especially where they do not
      own the property. Normally it should be about helping with site identification and
      planning.




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Figure 2: Site Development Initiatives

Location                      Action

Boston                        The West Street development offers opportunity for hotel. The
                              most likely candidate is a budget hotel, but a higher range brand
                              or modern style townhouse would be better for the town. Engage
                              with Modus in discussing the options.

Fens                          Actively seek the opportunity to nurture development of a high
                              quality      small     apart-hotel,         with   outstanding   sustainability
                              credentials, aimed particularly at walking and cycling enthusiasts.

Gainsborough                  Actively seek a site on Trinity Street for a budget hotel.

Grantham                      Seek a full service branded hotel as part of the station approach
                              development.

Ingoldmells                   Work with Butlins to encourage and facilitate the development of a
                              resort hotel there.

Ingoldmells                   Seek a suitable operator for a static caravan park ―makeover‖.
                              Provide help in securing the services of a top notch designer to
                              help make it happen.

Uphill Lincoln                Investigate whether a development site can be created combining
                              the Judges Lodgings and car park behind it. Earmark the site for
                              hotel development. See this as an optimal compliment to the
                              proposed investments in the public realm on Bailgate and in the
                              display of the Magna Carta in the Castle.

Downhill Lincoln              Assist and encourage the development of a branded full service
                              hotel in Downhill Lincoln, possibly as part of the proposed
                              extension to the main shopping area.

Louth                         Consider       possible      use       of    the   town   hall   for   quality
                              functions/restaurant with rooms development

Louth                         Encourage Batemans to investigate possibilities for a food pub with
                              rooms there.

Skegness                      Actively try to find a suitable ―close to prime‖ site for budget
                              hotel development.

Sleaford                      Engage with the owners of the Maltings as to whether development
                              there could include a stronger destination element, including
                              possible hotel.

Stamford                      Engage with the Burghley Estate on the feasibility of the Lady Anne
                              being upgraded to become a top notch townhouse-spa.

Stamford                      Examine the possibility of the Cattle Market and Welland sites
                              including a top of the range hotel and spa.




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      Location                      Action

      Woodhall Spa                  Engage with the owner of the Woodhall Golf hotel to see whether,
                                    possibly with the assistance of some public funding, there might be
                                    the possibility of upgrading the hotel and the spa operation to
                                    premier league status. Possibly facilitate discussions with possible
                                    operating companies that could help achieve this under a
                                    management contract. This is a possible signature project which
                                    might seek public funding.

      Woodhall                      Facilitate familiarisation by potential golf resort developers to
      Spa/Gainsborough              ascertain level of potential interest.



2.4   Timing
      Clearly, some of these initiatives are more difficult and would take longer to bring off than
      others, but work on all of them could start immediately.




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3.    National Trends and the Implications for
      Lincolnshire

3.1   Going up: Staying in Hotels
      The hotel sector has been performing well nationally in recent years. An annual survey by
      TRI Consulting, which tends to concentrate on larger properties, shows average room
      occupancy holding steady above 70% and revenue per available room (RevPAR) increasing
      considerably faster than the retail prices index 1.


      Figure 3: UK Hotel Market Statistics
                                       2001      2002       2003    2004    2005      2006    2007
      Occupancy rate                 72%       72%         72%     73%     73%       73%     72%
      Average Room Rate              70        68          68      74      76        80      78
      Room RevPAR                    £50       £49         £49     £54     £55       £58     £56
      Source: TRI Consulting

      London has been a key engine for growth. RevPAR is at a record £94, more than double the
      average for the rest of Britain (£44 in England, Scotland and Wales 2). Average room
      occupancy is above 80%. The luxury sector has been doing particularly well. 3

      People have become accustomed to using hotels. A 2006 Mintel survey of 1,000 internet
      users aged 15+ found that 72% had stayed in a UK hotel in the previous year.

      In response to this increasing demand, development has been feverish.

      Lodging Econometrics in their published study identify a total of 83 hotel projects due to
      open in the UK in 2008 adding a total of around 10,600 rooms to the nation‘s stock. They
      forecast a further 101 projects with approximately 13,300 rooms in 2009 and 76 projects
      with a total of close to 15,500 for 2010.

      TRI‘s Hotel Report 2007 highlighted increasing competition for quality development sites
      and for existing properties that are suited to re-branding. Many operators have been
      looking to expand brand networks or introduce into the UK brands that were not previously
      present.

      As discussed in more detail below, however, performance has dropped off significantly
      recently in response to the worsening economic conditions and the situation could be quite
      different now to what it has been in the recent past. One of the hotels interviewed for this
      study has, for example, already put refurbishment plans on hold.



      1
          Occupancy is ultimately of less importance than the average achieved room rate in a market heavily prone to
      discounting – TRI state that only 15% of bookings paid the full rack rate in 2006.
          2
              Hotels 2007 UK, TRI Hospitality Consulting
          3
              PriceWaterhouseCoopers Hospitality Directions




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      Implications for Lincolnshire

      •      The underlying increasing propensity of people to use hotels is likely to lead to a
             resumption of growth in the hotel sector in the longer term.

      •      As in other sectors of the economy, the short term outlook is unclear. It would not be
             a surprise, however, if there was little development activity for several years.



3.2   Going Up: Brands
      Most hotel development in the UK in the past three decades has been in the branded
      sector.

      In the past seven years branded room supply in the UK has increased by almost 50%. The
      budget sector has doubled its stock since 2000.4

      Although the top 15 brands in the UK only account for 1,700 of 47,000 hotels in the UK 5,
      they produce a high proportion of its revenue. The hotel stock in cities is now
      predominantly branded.


      Figure    4: Top 20 global hotel brands 2007
      Rank       Brand                   Group                Hotels 2007 Rooms 2007 Average Size
      1          Best Western            Best Western                4,164   315,401          76
      2          Holiday Inn             Intercontinental. HG        1,395   260,470         187
      3          Marriott                Marriott Int                  537   190,431         355
      4          Comfort                 Choice                      2,439   184,716          76
      5          Hilton                  Hilton Corp.                  498   172,605         347
      6          Days Inn                Wyndham World               1,859   151,438          81
      7          Express by Holiday Inn Intercontinental. HG           686   143,582         209
      8          Hampton Inn             Hilton Corp.                1,392   138,487          99
      9          Sheraton                Starwood                      396   135,859         343
      10         Super 8 Motels          Wyndham World               2,054   126,175          61
      11         Quality                 Choice                      1,128   112,173          99
      12         Ramada Worldwide        Wyndham World                 871   105,986         122
      13         Courtyard               Marriott Int                  733   105,526         144
      14         Motel 6                 Accor                         928    95,628         103
      15         Hyatt Hotels            Global Hyatt                  214    94,224         440
      16         Mercure                 Accor                         732    89,624         122
      17         Radisson Hotels         Carlson Hosp                  400    89,365         223
      18         Ibis                    Accor                         745    82,546         111
      19         Crowne Plaza            Intercontinental. HG          275    75,632         275
      20         Novotel                 Accor                         397    70,373         177

      Source: MGK Consulting Database

      There is little relationship between the brand that appears over the door of a hotel and its
      ownership.


       4
           Marketing Week Magazine, March 2007
       5
           MINTEL, Hotels, July 2006




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The most prevalent of brands, Best Western, is simply a marketing consortium. It is a
means by which independent operators can secure the advantages of a brand, including
central reservations.

Because it is mainly a marketing device for independent hotels, Best Western is more
prevalent in rural and suburbs worldwide, where independents are more prevalent, than in
city centres. There are 10 in the Lake District, for example, but only one in each of
Manchester and Liverpool. There are five hotels in Lincolnshire operating under the Best
Western brand. They total 188 rooms6, about the same size as a single medium sized city
hotel.

Of more significance is the trend for hotel companies to sell the freeholds of their hotels
on a ―sale and manage-back basis‖. In other words, an investment company will own the
property, but the hotel company will manage it on a medium term management contract,
typically 20-30 years. This has become a big factor in the past few years with several of
the largest companies selling off the freeholds of all or many of their properties.

For example, Intercontinental Group, the largest UK-based hotel company and until
recently the World‘s largest, has spent 7 years disposing of its ‗bricks and mortar‘, its
strategy being to become ‗a managed and franchised business‘. 7 Hilton and Marriott have
taken the same route, returning significant amounts of cash to their shareholders.

Alternatively, hotels are often operated under a franchise agreement. This is where the
owner of the hotel manages the property, but does so following the rules and under the
brand of the franchisor. Often a franchisee company will have a group of hotels and be of
substantial size in its own right (for example BDL).

Accor, the global group based in France, illustrates this mix of arrangements. The
company now owns only 13% of the 4,065 properties that its brands 8 appear on. 28% are
held on a lease, and 24% are managed by franchisees. Accor manages the remaining 1,500
properties under a management agreement.9

The brand is important in two respects. It is important in marketing to consumers,
especially given the rising significance of the internet as a means of making bookings, and
it is important to investors in giving confidence that a property that they invest in will be
managed effectively and well.

Many hotel developments now will have three key parties involved – a developer, a
financier and an operator. The developer will typically take the lead and will seek an
appropriate operating company to operate the hotel. This is what is happening in Lincoln,
for example, with the new Holiday Inn Express.

Another potential spur to development is the inclusion, from 2007, of hotel investments
within REIT (Real Estate Investment Trust) structures. This should in the longer term


 6
     Bestwestern.co.uk
 7
     MINTEL, Hotels, July 2006
 8
     Sofitel, Novotel, Mercure, IBIS, Formule 1
 9
     MINTEL, Hotels, July 2006




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      increase the sector‘s exposure to a wider range of investors, which ultimately should
      increase demand for suitable investments10.



      Implications for Lincolnshire

      •      The county is short of branded hotels in all categories.

      •      The best prospect of getting them will be as part of a wider development. A mid
             market branded full service hotel (such as Jurys Inn), for example, would possibly be a
             good ambition for the proposed Modus retail orientated development in Lincoln.

      •      There are some instances where there might be an opportunity for an existing hotel to
             take a brand either under franchise or as under a management contract. Woodhall Spa
             is one.



3.3   Going up: City Centre Locations
      All of the larger UK cities have seen a dramatic expansion in their hotel stock in the past
      decade as they have regenerated. They now have hotel infrastructure that would have
      been almost inconceivable 10 years ago.

      The larger regional cities in the UK cities have all experienced a boom in hotel
      development in the past few years as they have regenerated, and, notwithstanding any
      short term hiatus, this trends is likely to continue in the medium-long term. The following
      table presents shows forecast growth in hotel supply until 2010 for the major
      cities/population centres and for the UK as a whole given currently announced plans.


      Exhibit 1: Current and forecast hotel supply in UK cities 2007–2010
                             Total Current Supply Forecast New Openings
                             2007                    2008                  2009              2010
                             Hotels      Rooms       Hotels      Rooms     Hotels   Rooms    Hotels   Rooms
      London                 442         75,398      10          1,523     25       3,470    29       7,260
      Birmingham             61          8,787       0           0         7        880      6        1,062
      Manchester             52          7,650       5           668       1        176      6        1,392
      Liverpool              17          2,110       4           608       6        995      2        266
      Edinburgh              63          7,294       4           480       5        561      2        405
      Aberdeen               19          2,325       2           242       3        466      3        853
      Sheffield              27          2,472       4           481       2        370      2        318
      West Yorkshire         33          4,276       1           110       2        446      3        475
      Tyne & Wear            24          2,930       2           229       3        378      1        155
      Glasgow                59          7,198       2           174       1        128      3        448
      United Kingdom         2,487       280,420     83          10,651    101      13,344   76       15,558
      Source: Lodging Econometrics/Locum Consulting 2007



       10
            TRI Hospitality Consulting




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Business tourism has fuelled this rapid expansion in hotel stock in cities. It has been
supplemented by increasingly healthy short-break tourism at weekends and by increased
weekend business from weddings and functions.

TRI‘s statistics for the nature of the business of UK hotels shows why there has been an
emphasis on development in cities. Perhaps as much as 50% - when ―rack‖ rate business is
included - of rooms sold is generated by corporate business tourism. A further 10% is
conference business. In total, therefore, about two thirds of hotel volume in the UK can be
accounted for by business tourism.


Figure 5: UK room occupancy market mix analysis
                  UK   England
Corporate          38%     39%
Leisure            22%     22%
Breaks
Rack               15%     15%
Conference         10%     11%
Tour Groups         9%      8%
Other               6%      6%
Source: TRI Hospitality Consulting

The amount of hotel development that a city or large town attracts is typically a reflection
of the ability of the corporate sector to generate business. The nature of the commercial
activity is also important. Service sector industries have a higher propensity to generate
room night demand than manufacturing industries, which in turn generate significantly
more room nights than distributive activities.

Southampton, for example, which has a large office sector, has had substantial hotel
development, whereas Bolton and Preston, which do not, have only had development in
the budget sector.

Much of the city development has been in the economy and ―limited service‖ sectors of
the market, although increasingly ―full service‖ and ―focused service‖ offerings have been
brought to the market. There have also been significant increases in the specialist lodging
facilities such as ―boutique hotels‖ and ―extended stay‖ offerings.

The location of hotel development in cities has changed. Most UK cities have a cluster of
hotels in a suburb just out of town – Hagley Road in Birmingham, Osborne Road in
Newcastle, St Pauls Road in Bristol etc. – where, in the 1960s and 1970s, hotel
development took place because city centres were seen as dangerous and unwelcoming.
The situation is different now. Much city development, especially in the four star sector,
has been in the heart of city centres.

Smaller towns and cities have found it more difficult to attract hotel investment,
especially outside of the budget sector. This has been true of places as diverse as
Worcester, Horsham, Stockport, Bradford, Carlisle and Bolton, where Locum has worked
recently – all would like full-service hotel developments but have been unable to secure
them. This is because they do not have the bread and butter corporate business tourism of
the larger cities and, typically, are also not attractive destinations for weekend breaks.




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This can change, however. In Derby, a deluge of investment in new hotels in the city
centre is taking place after decades of nothing at all. It ranges from a smart boutique
townhouse hotel, by the owners of the Lace Market Hotel in Nottingham, to a Hilton.

Lincoln fits in the middle. There has clearly been substantial growth in the local economy
and demand for hotel accommodation. Occupancy rates are high. Perceived as a ―small
city‖, however, the private sector has been slow in responding to the opportunity. They
are doing so now with a series of schemes underway and significant investment in existing
properties. The hotels are achieving higher occupancy rates than is possible in rural
locations because they get corporate business during the week and leisure business at
weekends. The increasing attractiveness of the city, and the ―star‖ qualities of Uphill
Lincoln, makes it likely that this will continue.

A knock on effect for Lincolnshire of this development in the cities is that the expectations
of many consumers are now driven by the standards that they experience in the plush,
contemporary hotels that they experience there. Once people become accustomed to
these standards, it is difficult for them to accept the standards offered by older style, mid
market hotels that typify Lincolnshire‘s offer.

By contrast to cities, market towns have not typically enjoyed much new development. In
fact, there has been a tendency to reduction in hotel stock in these places as old
properties – coaching inns, etc – have become obsolete. They are difficult to upgrade to
modern standards and in some cases have become more valuable as residential
development opportunities.

The most likely way forward there is often an inspired individual, perhaps a restaurateur,
who has the vision and capability to create a small hotel of quality, as has happened in
Southport. Ludlow is possibly the most inspiring place in this respect.



Implications for Lincolnshire

•    Although there is likely to be a slow down in the medium term as a result of the
     recession, it is probable that the greatest opportunity for growth will be in Lincoln
     city centre. The new Holiday Inn Express, townhouse hotel on Brayford Pool,
     extension to and refurbishment of the Holiday Inn, and investment in hotels in Uphill
     Lincoln, will improve the offer substantially, but there will still be gaps, in particular
     in the branded mid-market sector. The proposed Modus development might provide an
     opportunity to fill this.

•    On a smaller scale, there seems also to be gaps in the market in places like
     Gainsborough and Grantham where there is a bread and butter corporate market that
     is not adequately served. Like Lincoln, Grantham would probably most benefit from a
     full service hotel in the mid market – something akin to Jurys Inn.




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3.4   Going Up: Limited Service “Budget” Hotels
      The fastest growth over the past decade has been in the so-called ―budget‖ sector. This is
      reflected in Lincolnshire – almost all new development has been in this sector.

      It is now 22 years since the arrival of the first budget hotel in the UK, a 20 bedroom
      Travelodge in Staffordshire.

      At the end of September 2007, according to the most recent figures from Mintel11, there
      were in excess 86,000 budget hotel rooms in the UK, compared with just 52,000 in 1992.
      Despite its expansion, the budget hotel market accounts for only around 11% of the UK
      hotel stock compared with 35% in France, and there still seems to be ample scope for
      further development.

      The largest UK player is Premier Inn, owned by Whitbread. It has a target of 45,000 rooms
      by 2010, and has pipeline plans of 4,000 rooms for 2008/09 (2007/2008 was 3,400)12.

      The other dominant operator in the sector is Travelodge, owned by the private equity fund
      Primera. Their development plans require opening more than 4,000 bedrooms per annum,
      with a total requirement for a further 70,000 bedrooms by 2020.

      Other brands include:

      •      IBIS – owned by the French group Accor. There is one in Lincoln. Sometimes
             developed, as in Manchester, as a ―twin‖ with the 4 star Novotel.

      •      Holiday Inn Express – developed under franchise. One has just been opened on
             Brayford Pool in Lincoln.

      •      Such is the current size of the budget sector that it has itself become segmented with
             extreme budget hotels such as Nite Nite, Etap, Campanile and Easy Hotel at one end,
             brands such as Ibis and Travelodge in the middle, and more products such as Express
             by Holiday Inn, Hampton Inn, Premier Inn and Ramada Encore at the other end.
             Matters are further complicated with the emergence of ―Focussed Service‖ brands
             such as Hilton Garden Inn, Park Inn and Marriott Courtyard, which bridge the gap
             between premium budget and full service properties.

      These oft-called ―budget‖ hotels normally compete, in fact, in the mid-market. They
      certainly compete against B&Bs and other form of traditional low-cost accommodation,
      but they also compete against the traditional 2–3 star independent hotel. They have a
      strong offer compared to the latter. They do the basics well – big rooms (they have made
      single rooms almost obsolete) and good showers. They lack character, but when it comes
      to a choice between fading ―character‖ and a decent shower, the latter increasingly wins
      out with the consumer.




       11
            Mintel Budget Hotels, Leisure Intelligence Sept 2007
       12
            PwC UK Hotels Forecast Nov 2008




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      Through keen pricing, budget hotels have created new, local markets, attracting
      customers who would previously have opted for driving longer distances or staying with
      friends or relatives.

      Whereas full service three and four star business hotels tend to dominate in city centres,
      most development that has taken place in trunk road locations has tended to be in the
      budget sector.

      This is in contrast to previous hotel development cycles in the 1970s and 1980s when
      motorway locations attracted much of the development in the four star sector.



      Implications for Lincolnshire

      •    Although most of the hotel development in Lincolnshire in recent years has been in
           this sector, there is still development opportunity. There is a noticeable lack of
           coverage in the north and east of the county with apparent opportunities in places
           like Gainsborough, Skegness, and Louth. There is also a noticeable gap in Stamford.

      •    Possible road junction sites in Lincolnshire might include Caenby Corner in West
           Lindsey at the intersection of the A15 and A631 or where the A16 bypasses Louth.



3.5   Going up: Self-Catering for Family Holidays
      One of the most fundamental changes in tourism in the UK in the past few decades has
      been the growing preference for self-catering rather than serviced accommodation for
      holidays, especially for longer breaks (i.e. more than 4 days) and for families.

      In the heyday of the UK based holiday, people would typically stay in a bed and breakfast,
      guest house, hotel or holiday camp.

      Now, they are much more likely to prefer a cottage, villa or apartment. This is mainly
      because people like more independence and to combine cooking for themselves with
      eating out when they are on holiday.

      As a generalisation, self-catering is likely to be the accommodation of choice for longer
      stays, and higher quality serviced accommodation is likely to be the accommodation of
      choice for short breaks. Although this report is not concerned with self-catering, the
      consultation has encountered several proposals for self-catering lodges in rural parts of the
      county. There seems to be considerably more activity in self-catering than in serviced
      accommodation in rural areas. By contrast, the demand for the hotels and guest houses in
      Skegness is clearly on the wane. Both phenomena are consequences of the market
      responding to an underlying trend.



      Implications for Lincolnshire

      •    Self-catering is likely to continue to be the primary growth area for leisure based
           staying tourism, even for shorter stay breaks, in coastal and rural areas. Given the




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           trend to shorter stay breaks, there may be opportunities for small apart-hotels in rural
           and seaside locations, as discussed in the next section.



3.6   Going Up: Apart-hotels
      ―Extended stay hotels‖ are an important emerging trend in regional cities. It has arrived
      from the United States, where there are 240,000 rooms in the extended stay ―apart-hotel‖
      sector. There are offers in budget, mid-range and luxury segments.


      Figure 6: Room kitchenette at The Suites at 1 King West Hotel in Toronto




      Example of the compact, but useable kitchenette layout, that extended stay
      rooms feature.


      The sector has been emerging in the UK. The Intercontinental Group, for example, has
      bought its Staybridge Suites to the UK. It caters for longer stays (usually 5+ days), with
      larger rooms that contain a kitchenette and lounge area.




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Figure 7: New Staybridge Suites hotel in Liverpool




Other branded products in the country, currently in small numbers, are Ascott and
Citadines branded products. There are also a number of quality extended-stay brands
looking at the market such as the Adina brand promoted by Australian investors.

There are also signs of the sector emerging in rural and seaside areas. As discussed above,
UK leisure tourism is increasingly dominated by short breaks, and people increasingly want
to use self catering because it gives them more flexibility and freedom, especially given
that there is a greater choice of places to eat out now than there was in past times and
that has become an increasingly important part of the leisure experience for many people.
Apart-hotels, therefore, seem to have a good potential market fit.


Figure 8: Case Study – Westcliff, Cornwall

Westcliff is an independent, small apart-hotel concept in Looe, Cornwall. The property has
7 apartments that range from 2-4 persons. The units are sold on both weekly and per
nightly basis, breakfast not included. The standard is equivalent to a 4 star hotel and it
prices accordingly.
                      Weekly Rate        Daily Rate
Low Season          £556               £100
High Season         £695               £125




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      Implications for Lincolnshire

      •    An apart-hotel would be an excellent addition to the city‘s accommodation offer.
           There may be an opportunity for a branded version in development Downhill Lincoln.

      •    The concept might provide an interesting development opportunity for independent
           operators in the market towns and in rural locations such as the Fens.



3.7   Going Up: Mixed Use Resorts
      Much resort development taking place world wide has a mix of different uses – typically
      with hotel(s) plus second home residential and fractional ownership at the core.


      Figure 9: Watermark, Cotswolds Water Park




      Watermark is a high quality development of premium villas in a range of
      architectural styles in the Cotswolds Water Park in Gloucestershire. They are
      sold as second homes and let for holiday lets when the owners are not using
      them. It includes a range of leisure facilities.



      In UK, North America and the Mediterranean they normally feature golf course(s) and spas,
      and are normally within fairly easy reach of urban areas. They rely on a combination of
      business (in this case, meetings and conferences) and leisure trade.



      Implications for Lincolnshire

      •    As a rural location, Lincolnshire lends to the concept of a mixed-use resort and
           associated range of destination attractors. DeVere Belton Woods near Grantham is an
           example of this with major focus on golf and conferencing. In this light, developing
           the golf offer of Woodhall Spa or Gainsborough could be a possibility. The main barrier
           is likely to be distance from major office locations.




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3.8   Going Up: “Boutique” Hotels
      Growth of the ―boutique‖ sector has been led in the UK by Malmaison and Hotel du Vin,
      which was taken over by the former. Malmaison has become, in effect, an upscale hotel
      chain.

      The concept is broadly, smaller, independent hotels/small groups that have character and
      offer a premium product (there is an additional case study – the new Vincent Hotel in
      Southport – in Figure 46).


      Figure 10: Waterhead Hotel, Ambleside, Cumbria




      Following Locum’s work in emphasising the need for higher standards in all
      aspects of the tourism offer in the Lake District, a “second generation”
      managed family company English Lakes Hotels changed their plans for the
      refurbishment of one of their properties, the Waterhead Hotel in Ambleside.
      It has been refurbished with state of the art modernity, while keeping with
      the rural location. It has been highly successful since opening in 2005.


      The consultations for this study showed that there has been significant investment by
      proprietors of hotels in Lincolnshire and a ―Malmaison‖ style of interior design is in vogue.
      Although meritorious, it often falls just a bit short in terms of quality and is likely to date
      quite quickly. The best townhouse style hotels have an originality and ―quirkiness‖ in their
      design that has a certain timelessness about it.


      Figure 11: Belmont Hotel, Dallas, Texas




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A standard 1950s motor hotel on the outskirts of Dallas that has been
refurbished in a very “hip” style. The trick with this is a mix of the sort of
quality that the Travel Inns offer (as opposed to the “luxury” that the likes of
Malmaison offer) combined with individuality and quirkiness. It is not easy to
pull off and many places try without quite getting it right. Hotels like this
tend to be highlighted in guide books and to get into publications like the
Good Hotel Guide. The Lincoln Hotel in Uphill Lincoln is trying, with some
success, to do this kind of thing and deserves particular encouragement. There
are many other hotels in the county that would probably benefit from a
similar approach.


Whereas much of the independent hotel offer in Lincolnshire and elsewhere is in the 2 and
3 star category. Boutiques are aimed at consumers who want four star standards, but with
more character and distinctiveness than is offered by chain hotels operating in that sector
and in a smaller more personalised property. The Hotel du Vin-type model aims to also fill



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the gap created by the reputation of traditional full service hotels for mediocre food and
beverage.

A PwC survey found that rooms in the ―lifestyle‖ hotel segment in Europe grew by 6%
between 2005 and 2006.13 They identified three 3 tiers:

Luxury: e.g. Stein, Firmdale, Eton Town House, Starwood‘s W.

Mid-market: e.g. Sorat, Hotel du Vin and Malmaison, Abode.

Newer budget segment: e.g. Yotel, Big Sleep, Quest.

By its nature, this sector is volatile – new ideas and brands emerge regularly.


Figure 12: New Concepts in the Boutique Sector

Hilton opened 3 ‗lifestyle hotels‘ at Canary Wharf, London Bridge and Manchester
Deansgate in 2007. The Manchester Deansgate Hilton, which forms part of the Beetham
Tower, was voted one of the ‗coolest new hotels in the world‘ by Conde Naste Traveller in
their Hot List 2007.

Marriott International is teaming up with Ian Schrager to develop a new boutique brand of
as many as 100 hotels worldwide in what they describe as ‗the marriage of premier lodging
with the pioneer of the lifestyle boutique hotel‘14 Each will have 150-200 rooms and be
located in gateway cities across the world.15

Le Monde is a new £12 million luxury, boutique hotel located in Edinburgh, Scotland. It has
18 individually-designed suites inspired by different cities. Its rates start at £200 per suite
per night.

Quest‘s first hotel is the 200 room Hoxton Hotel, which has been described as an ―urban
lodge‖.

Abode is a brand that intends to be differentiated by its high quality food and drink
offering, spa and conferencing facilities. The group has properties in Glasgow, Manchester,
Exeter, Canterbury and Chester.



Implications for Lincolnshire

•      Lincoln itself – especially Uphill - and several of the county‘s market towns lend
       themselves well to the sorts of products offered by this type of property.

•      It might be worth trying to develop a ―mentoring‖ programme that helps enthusiastic
       and committed independent hoteliers to make the most of their investment. This
       would ideally work by providing them with the services of professionals, especially
       perhaps in interior design and food and beverage, to help them bridge the 10%

 13
      Price Waterhouse Coopers, Hospitality Directions Europe Edition, September 2006
 14
      Marriot International News, June 15th 2007
 15
      Ehotelier.com




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             ―inspiration gap‖ that can often translate enthusiastic amateurism to excellence.
             Locum encountered several hotels in the research for this study that would probably
             benefit from this sort of help.



3.9   Going Up: Spas
      The UK spa market is estimated to have expanded by around 7% a year since 2000. 16 Spas
      are becoming an essential ingredient of a quality resort hotel. They have the added
      advantage of providing a wet-weather facility. Currently, however, the Condé Nast top 10
      Global and European spa list features no entry from the UK.


      Figure 13: Spa Hotels in St Helier, Jersey




      St Helier in Jersey is perhaps the best place to go to see what can be done to
      develop independent style spa hotels. The Royal Yacht and the Club, on the
      bottom row, are both family owned hotels that have been turned from 2 star
      into top of the range boutique style hotels, both with large spas in at
      basement level. The Club also has Jersey’s only Michelin starred restaurant.
      The most impressive of the spa developments, however, is the Ayush Wellness
      Spa at the Hotel de France, also independently owned. It has indoor infinity
      pools, hot and cold plunge pools, hydrotherapy pools and a large deep therapy
      jet pool which open to landscaped gardens. The only spa treatments on offer
      are Ayurvedic treatments, with traditional spa therapies adapted to Ayurvedic
      principles and applied by experts imported from India. It has a 5 bubble rating
      in the Good Spa Guide. St Helier is abnormal in that it has a major financial

       16
            The British Spa Federation




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services industry, but the type of offer that has been developed is potentially
relevant to certain locations in Lincolnshire such as Woodhall Spa, Uphill
Lincoln, Stamford and possibly a destination hotel on the Skegness seafront.


There are many variations of spas. Often they are simply enhanced leisure facilities that
are attached to hotels, something that is noticeably lacking in Lincolnshire, not least in
Lincoln itself and in Stamford.

Another category is ―destination spas‖. They are often located in attractive rural areas.
With them, the spa is the focal point of the experience. They can take the form of health
farms (which concentrate on health assessments, body and facial treatments,
complementary therapies, and diet and exercise advice), ―holistic spas‖ (seek offer more
broad based psychological and physical guidance and treatments), ―resort spas‖ (which
tend to be part of family holiday centres), dental spas (common in the US, some in the UK
– combine regular dental treatment with other spa-type treatments), and ―medi-spas‖
(combine cosmetic surgery with day spa experience)

The Good Spa guide lists the best spa hotels in the country. It gives 24 properties 5 stars
and 32 properties 4 stars. None of them are in Lincolnshire. Most of them are in rural
areas. There is an emphasis on key southern locations like the New Forest, the Cotswolds
and the M4 Corridor, but there are examples in many locations and, noticeably, they are
not confined to classic tourism hotspots (there are none, for example, in the Lake District
or the Peak District for example).


Figure 14: Spa Hotels in Britain (exc London) listed in the Good Spa Guide

―5 BUBBLE‖ SPA HOTELS                                    ―4 BUBBLE‖ SPA HOTELS

Whately Manor, Malmesbury, Wiltshire                     Barnsley House, Cirencester, Gloucs

Spread Eagle Hotel, Midhurst, W Sussex                   Bath Spa Hotel, Bath

Bamford Hay                                              Bedruthen Steps, Mwgan Porth, Cornwall

Calcot Spa, Tetbury, Gloucs                              Boath House, Nairn, Inverness-shire

Careys Manor Hotel, Brockenhurst, Hants                  Bodysgallen Hall & Spa, Conwy, North Wales

Chewton Glen, New Milton, Hants                          Brooklands Retreat, Garstang

Dart Marina, Dartmouth, Devon                            Cameron House, Loch Lomond

Eastthorpe Hall, Mirfield, W Yorks                       Centre Parcs, Longleat, Wilts

Forum Spa, Celtic Manor Resort, Newport                  Charlton House, Shepton Mallet, Somerset

Four Seasons, Hook, Hampshire                            Cowley Manor, Cheltenham, Gloucs

Fredrick‘s Hotel Spa, Maidenhead, Berks                  Cliveden House, Berkshire

Gleneagles, Auchterarder, Scotland                       Danesfield House, Marlow, Bucks

Malmaison Hotel, Birmingham                              Devonshire Arms, Skipton, Yorkshire




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New     Park     Manor       Bath     House      Spa,    Donnington Valley, Newbury, Berks
Brockenhurst

Rookery Hall Hotel, Nantwich, Cheshire                   Fistral Spa, The Bay Hotel, Newquay

Royal Crescent Hotel, Bath                               Hartwell House, Aylesbury, Bucks

Runnymede Hotel & Spa, Egham                             Hoar Cross Hall, Yoxall, Staffs

Seaham      Hall    Hotel,     Seaham,       County      Knights Hill Hotel, Kings Lynn, Norfolk
Durham

Sheraton Grand Hotel, Edinburgh                          Landsdowne Place, Hove, W Sussex

The Grove, Watford

St Brides, Saundersfoot, Wales                           Matfen Hall, Matfen, Tyne & Wear

St David‘s Hotel & Spa, Cardiff                          Norton House, Ingliston, Edinburgh

Vineyard, Newbury, Berkshire                             Old Course Hotel, St Andrews, Scotland

                                                         Peebles Hotel Hydro, Peebles

                                                         Pennyhill Park, Bagshot, Surrey

                                                         Solent Hotel & Spa, Fareham, Hants

                                                         Spa SPC at Stoke Park Club, Stoke Poges, Bucks

                                                         Sprowston Manor Marriott, Norwich

                                                         Thornton Hall, Thornton Hough, Wirral

                                                         Vale Hotel, Golf & Spa Resort, Hensol, Cardiff

                                                         Whittlebury Hall, Towcester, Northants

As the list illustrates, independent operations, either offering their own signature
treatments, based on local products or the most well known and respected branded spa
products and treatments, perform equally well alongside established spa and hotel brands.

A sea-water (Thalassotherapy) spa is a possibility for a transformational project in
Skegness. It could make a good combination with the casino.


Figure 15: Examples of Thalassotherapy Spas

Stemming from the Greek words thálassa, meaning sea, and therapeía, meaning healing,
thalassotherapy is comprised of a series of treatments – baths, showers, and massages,
primarily – that all use seawater to stimulate healing and relaxation. France has more
thalassotherapy than any other country with over thirty centres. There are also
thalassotherapy spas in Spain, Portugal, Belgium, Greece, Cyprus, Morocco and Tunisia.
There are currently none in the UK. In France, the government requires that a constant
supply of clean, fresh seawater is used daily at every thalassotherapy centre (each spa
visitor uses approximately 260 gallons of freshly pumped seawater per day) and water




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quality is tested monthly by the French Ministry of Health. Many French devotees of
thalassotherapy complete two cures annually, one during the spring and another in late
autumn.


Institute Louison Bobet, Brittany




Louison Bobet was a famous French cyclist who decided to build his own thalassotherapy
institute after discovering the benefits of seawater treatments following a serious cycling
accident. Located on the coasts of the Morbihan region, in the centre of south Brittany,
the Thalassotherapy Centre of Louison Bobet is on the edge of the Gulf of Morbihan. The
Institute is housed inside the Miramar Crouesty, a unique building in the shape of an ocean
going linear that is nicknamed the ―The Liner of Health‖. The Miramar Crouesty Hotel is
also housed within the building. The Miramar Crouesty has 120 rooms and a number of
larger suites. The vision behind the resort is to offer the elegance and sophistication of the
early Atlantic Cruise liners. It has two restaurants that specialise in low calorie foods. The
2,500 m² Institute of Thalassotherapy is situated on the first floor of the Hotel and is
surrounded by a sea water lake. The Institute uses the salt-water lake as a source for the
treatments and seawater pools housed throughout the Thalasso Institute.


Centre de Thalassotherapie Thalgo, La Baule, France




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The centre is located over three floors totalling 3,000sqm. Each floor offers different
treatments: seawater treatments, dry treatments and relaxation and beauty. The centre‘s
facilities include: 3 heated seawater pools: aquagym pool, diagnosis pool and a baby pool,
4 jet shower cubicles, 2 overhead shower cubicles, 8 seaweed bath cubicles, 7 underwater
jet cubicles, 2 affusion massage cubicles, 8 seaweed application cubicles. The centre
currently employs and employs 50 members of staff. Other facilities include a beauty
centre, a relaxation area and a boutique offering Thalgo products. The hotel complex is
owned by the Lucien Barrière group, and the treatments offered are provided in
conjunction with Thalgo, the group that initially developed treatments utilising sea water
to aid health and beauty. Thalgo has a number of similar ventures across France.


Inchydoney Island Lodge and Spa, Cork




Situated overlooking the Blue Flag Inchydoney Beaches, the Inchydoney Island Lodge and
Spa is a modern 4-star resort opened in 1998. It includes Ireland‘s first Thalasso spa, an
award-winning Restaurant, 67 ocean facing rooms and extensive conference & banqueting
facilities. The Thalasso Centre uses highly sophisticated equipment including multi-
functional aeromarine baths, a sea water jet shower, algae application, cryotherapy,
lymphatic      drainage,       pressotherapy,        shower          massage,   marine   brumisation,   and
physiotherapy beds. The Centre is supplied daily with sea-water drawn from the Celtic Sea

Additional facilities include a steam room, sauna, fully-equipped gymnasium and an
extensive beauty clinic. For after treatment care there is a relaxation room and thalasso
refreshment bar.

The resort has formed a relationship with the Old Head of Kinsale Links Golf Club which is
situated a short drive along the coast. This allows residents at the resort to play the
courses at a discounted rate and without an existing member.

The lodge has one conference and banqueting suite that caters for up to 400 guests.
Activities include horse riding at the Clonakilty Equestrian Centre, sea fishing, cycling,
seawater diving, sailing, whale watching and surfing.

Lincolnshire does not have a significant spa offer. The only hotel operated spa in the
county is at The Golf Hotel in Woodhall Spa. They operate the Aquasante spa that has 7
treatment rooms and uses the natural spa mineral waters of the area. The original spa at
Woodhall Spa has collapsed. We understand the reopening of the original spa to be too
expensive (c. £2/3 million) and so action should be focused on supporting the current spa




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       offer at The Golf Hotel. Professional advice on expanding their offer would be required to
       leverage the relationship with the neighbouring golf club.



       Implications for Lincolnshire

       •      Because spa hotels can become destinations in their own right and draw people to
              areas that they may not normally visit, they are the most likely development
              opportunity for significant rural hotel development.

       •      Development of the spa offer at Woodhall Spa seems to be the most obvious short
              terms opportunity.

       •      A high quality spa hotel would be an excellent addition to the Stamford visitor offer,
              and should perhaps be a development priority there.

       •      A high quality spa would also be an excellent addition to the Lincoln Uphill offer.

       •      A bold transformational project for Skegness might be a landmark spa and casino
              combination, possibly with a thalassotherapy theme.



3.10   Going Up: Concern for Sustainability
       ‗Sustainability‘ has become a key issue for hotel operators.

       Most large hotel companies have Corporate and Social Responsibility initiatives. One of the
       worlds largest hotel companies, Starwood, for example, has launched "1" Hotel and
       Residences, supposedly ―the first luxury, eco-friendly global hotel brand‖. The concept is
       to combine the best of environmentally sustainable architecture and interior design with
       impeccable service and luxurious comfort. "1" will adhere to green construction and
       operating principles and commit to environmentally sensitive consumption of natural
       resources. InterContinental are also developing an ―Innovation Hotel‖ concept which
       flagships sustainable best practice.

       In the UK, Whitbread is currently developing a 20 room hotel at Tamworth, under their
       Premier Inn brand, as an experimental exercise in sustainable design in order to evaluate
       what works best before roll out across all new schemes. The development is rated at the
       top of BREEAM‘s ―very good‖ rating. Whitbread estimate build cost to be 25% more per
       room (they quote £58k per key for a normal hotel) and believe it will save them 80% on
       utility bills and has 80% less embedded carbon than a standard build hotel. Payback on this
       extra capital investment is estimated at 15 years (Premier Inn hotels have an estimated
       life of 25 years).17




        17
             Sourced from an industry contact from Colliers International Hotels




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Figure 16: Sustainable design features on trial for Premier Inn
Ground source heat pump                                                  Water based paints
Recycled aggregates                                      Recycled carpets
Low cement concrete                                      Case goods FSA approved timber sources
Timber frame                                             LED lights
Timber floor (as opposed to a concrete slab)             Grey water recovery for toilet flushing
Swedish triple glazed windows (U-Value 0.75)             Closed panel system used for partition walls
Recycled plastered board with zero waste                 Overhanging eaves to reduce solar gain
Solar panels
Source: Premier Inn

Interest in sustainability has captured consumer attention, but there is little evidence so
far in the UK of hotel demand being led solely on green credentials. To generalise,
mainstream consumers seem to agree with sustainable ideas but there is little evidence so
far that demonstrates they will pay extra, or sacrifice on quality for it. They have not,
however, had much chance to show that they will.


Figure 17: Added Value of Sustainable Building
·    Increased building value                                        ·   Differentiation
·    Lower energy bills                                              ·   Enhanced building visibility
·    Market demand – especially occupiers and operators              ·   Meeting CSR agenda
·    Tax & Regulatory Incentives                                     ·   Attraction & Retention of Employees
·    Future-proofed building                                         ·   Faster planning approval

Many hotels make some effort to promote their eco-credentials, although not in a
particularly credible manner. Many pick up on reduced energy consumption, reduced
water use, recycling, using locally sourced materials and are making the best of their
situation.

We are not aware, however, of any open, new hotel development that is setting a high
benchmark for sustainable development, and the opportunity to do is still available.

In other property sectors, developers have been ahead of the curve with exemplary low
carbon developments such as BedZED, Kingsmead School, Innovate in Nottingham, The
National Trust HQ in Swindon and the EPIC centre in Lincoln.




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       Figure 18: Case Study: Best Western Hotel Victoria, Freiburg, Germany

       The Best Western Hotel Victoria in Freiburg, Germany, is considered a zero-carbon hotel.
       This means the operation of the hotel has no net consumption of carbon and therefore
       doesn‘t contribute directly to climate change. The hotel has no reliance on fossil fuels to
       meet its energy demand. The hotel has a mix of on-site renewable energy technology
       including solar water heating and a wood pellet boiler. The hotel‘s solar power system
       provides 25% of the electricity needs and the reminder is met from a local hydroelectric
       plant and purchasing green energy from the grid. However, Hotel Victoria is an old
       building with embedded carbon use in its construction as well as inefficiencies in energy
       use inherent in the old design. Better results could be achieved in a new construction.



       Implications for Lincolnshire

       •      All new developments will have to be more environmentally aware and consider
              sustainability in both their design and operations.

       •      Locum is not aware of any exemplar, low carbon best practice hotel buildings in the
              UK at present. This could represent an opportunity for Lincolnshire to create a niche.

       •      The EPIC building at The Lincolnshire Showground is a new exemplar, low carbon
              building. The Showground is marketing a site on their land which would be an
              opportunity to build upon the sustainable credentials of the EPIC centre and generate
              a niche for Lincolnshire. Realistically, however, a contribution of public funding is
              likely to be necessary to make it viable.



3.11   Going Up: Information and Bookings via the Internet
       The Internet has rapidly become a primary factor in the marketing of hotel rooms.

       In January 2006, Internet penetration in the AB socio-economic grouping reached 80% and
       there is now high penetration among all age groups 18.

       As an indication of its significance, Travelodge say that nearly 80% of its room sales are
       booked on line19, although it is still much lower than that for most hotels.

       The internet has changed the marketing environment for hotels. They can now sell-off
       empty rooms close to arrival time on websites such as lastminute.com. Astute companies
       like City Inn have become adept at Easyjet style ―yield-management‖ i.e. varying the
       price of rooms according to how much demand they anticipate. Hotels that offer high
       standards benefit from ‗review‘ sites such as Tripadvisor – this kind of customer appraisal
       is, arguably, supplanting official grading systems as a means of judging quality. Consumers
       are now able to use video streaming to get a better idea of hotel facilities.

        18
             MINTEL, Hotels, July 2006
        19
           MINTEL, Hotels, July 2006




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       Skill in using the internet is likely to become increasingly important in marketing. The
       Charlotte House in Lincoln, for example, focuses most of its marketing budget on Google
       Adwords and says that a large proportion of its sales are a result of that.



       Implications for Lincolnshire

       •    Lincolnshire has few hotels linked into the global GDS systems that provide their
            availability to the booking masses. Those that fall behind in technological advances
            will not have sufficient access to this market and will suffer declining bookings.

       •    Marketing to individuals is extremely difficult for individual properties and consortia
            and / or collective marketing arrangements will be more effective. There are some
            independently owned hotels in the county that might be better off under a
            management contract or franchise in order to achieve this.

       •    Help and advice on how to best use the internet to maximise bookings and to
            implement yield management could help to improve performance of current hotel
            stock.



3.12   Going Up: High Quality B&Bs, Restaurants with Rooms and Gastro Pubs
       In the British Isles, bed and breakfast accommodation has traditionally been seen as a low
       cost alternative.

       That is not the case in countries like Australia and the United States, where bed and
       breakfast establishments are often of exceptional quality and charge prices that are higher
       than hotels.

       There is evidence that the same kind of thing is happening in the UK.

       In Scotland, the Scotland‘s Best B&Bs Consortium has been exceptionally successful.
       Established by a landlady near Inverness who was continually being asked to recommend
       B&Bs of ―the same type‖ as hers, she established a consortium that now has almost 100
       members all over Scotland.

       In towns and rural areas, high quality restaurants with rooms and gastro pubs can be a
       destination in their own right. In a 2006 Mintel survey, 62% of respondents ranked a good
       quality restaurant as an ‗essential‘ or ‗important‘ part of a hotel stay. Some parts of the
       country have created grant schemes to encourage this. The Tourism Connect programme
       in Cumbria is an example.

       The Good Hotel Guide gives an indication of the number of independent establishments of
       exceptional quality. It is entirely independent and entries result from nomination by
       customers.

       The 2009 Guide includes 800 independent hotels and B&Bs across the UK, with Lincolnshire
       ranking 32nd out of 47 English counties for total entries.

       Lincolnshire has one full entry (The George at Stamford) and three short listed entries:
       The Castle Hotel (Lincoln), The Old Bakery (Lincoln) and The Angel & Royal (Grantham).



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Figure 19: Good Hotel Guide 2009 Entries by English County
Rank     Area                Full Entries Short listed Total Rank Area              Full Entries Short listed Total
     1   Devon                         39            11   50    25 Isle of Wight                5            2    7
     2   London                        17            27   44    26 Cambridgeshire               3            4    7
     3   Cumbria                       31             6   37    27 Wawickshire                  2            5    7
     4   Cornwall                      27            10   37    28 Cheshire                     4            2    6
     5   Somerset                      24            10   34    29 Co. Durham                   4            1    5
     6   N Yorkshire                   23             9   32    30 Tyne & Wear                  3            2    5
     7   E Sussex                      13            11   24    31 Berkshire                    2            3    5
     8   Norfolk                       14             7   21    32 Lincolnshire                 1            3    4
     9   Gloucestershire               14             4   18    33 Isle of Scilly               4            0    4
    10   Dorset                        13             5   18    34 W Midlands                   3            1    4
    11   W Sussex                      13             5   18    35 Nottinghamshire              3            0    3
    12   Derbyshire                    10             7   17    36 Leicestershire               2            0    2
    13   Hampshire                     10             7   17    37 Northamptonshire             2            0    2
    14   Kent                            6            9   15    38 Merseyside                   1            1    2
    15   Suffolk                         9            5   14    39 Buckinghamshire              1            1    2
    16   Wiltshire                       9            5   14    40 E Yorkshire                  1            1    2
    17   Oxfordshire                     9            4   13    41 Hertfordshire                1            1    2
    18   Essex                           8            3   11    42 Surrey                       1            1    2
    19   Shropshire                      8            3   11    43 Staffordshire                0            2    2
    20   W Yorkshire                     5            5   10    44 Isle of Man                  1            0    1
    21   Herefordshire                   6            3    9    45 Rutland                      1            0    1
    22   Northumberland                  5            3    8    46 Mid Sussex                   0            1    1
    23   Lancashire                      1            7    8    47 Bedfordshire                 0            1    1
    24   Worcestershire                  6            1    7


The Good Pub Guide 2009 has 16 entries for pubs in Lincolnshire, only two of which offer
accommodation. These include The George at Stamford and Welby Arms, Allington (near
Grantham).

Alastair Sawday is another independent accommodation guide book publisher. The Sawday
2008 Pubs and Inns guide includes 5 entries for Lincolnshire, three of which are pubs with
rooms located near Grantham.


Figure 20: Alastair Sawday Pubs & Inns entries for Lincolnshire (2008)
Name                                      Location                       No. of Rooms
Chequers Inn               Woolsthorpe by Belvoir, Grantham          4
Houblon Inn                Oasby, Grantham                           4
Brownlow Arms              Hough on the Hill, Grantham               4
Wig & Mitre                Lincoln                                   0
The Blue Bell Inn          Belchford, Horncastle                     0

Pubs have come under considerable financial pressure and the sector is shrinking.
Accommodation, alongside food sales, is an obvious means of generating additional
revenue. There are practical difficulties to be overcome, however. Complying with fire
and other health and safety regulations is often difficult and expensive. Many pubs are
tenanted. The tenants buy the fixtures and fittings. Adding rooms might be unaffordable
for them.




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       Implications for Lincolnshire

       •      The performance of the county in terms of small hotels and food pubs of quality is
              disappointing. There are, in particular, several attractive market towns where the
              visitor offer, for locals and tourists alike, would be considerably enhanced if there
              was such an offer. A public sector supported scheme that aimed to help a relatively
              small number of units achieve such status would be worth considering. The focus
              should probably be on town centres in places like Louth and Horncastle.

       •      A core part of the ―mentoring‖ programme suggested in this report should be assisting
              pub owners and tenants with planning how to add rooms to their offer.



3.13   Going Down: The Economy
       Having commented on the general positive trends of the last 10-15 years, evidence is
       beginning to emerge that indicates that the global economic downturn is starting to
       impact hotel demand and performance in the UK.

       PriceWaterhouseCoopers (PwC) report the summer of 2008 as a turning point with average
       occupancy falling by 4.1 percentage points in September alone across the UK20. PwC
       predict the end of year average occupancy for 2008 will be 1.7 percentage points lower
       than 2007.


       Figure 21: UK trading Jan-Sept 2008 (% change from 2007)
                             UK       London    Provinces
       Occupancy         -1.5     -0.1         -2.1
       ARR               3.6      6            1.5
       RevPAR            2        5.9          -0.6
       Source: STR Global Nov 2008

       STR Global are forecasting that Occupancy, Average Room Rates and Revenue per room in
       the UK will all decrease from 2008 levels in 2009.


       Figure 22: Forecast baseline scenario % growth on previous year
                         2008                                  2009
                         UK        London       Provinces      UK           London   Provinces
       Occupancy         -2.3      -1.9         -2.4           -2.6         -11.8    0.3
       ARR               2.2       5.4          0.7            -1.8         -0.2     -2.5
       RevPAR            -0.1      3.4          -1.7           -4.3         -11.9    -2.2
       Source: STR Global Nov 2008

       It is a time of abnormal uncertainty and it is unclear what the impact will be. It remains to
       be seen how much the economic downturn will put a brake on the heated pace of
       development of recent years, but past experience is not encouraging. Previous bursts of


        20
             UK Hotels Forecast PWC Nov 2008




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       hotel development in the early 1970s and 1980s were, in each case, followed by a long
       period of little development activity once the bubble burst.



       Implications for Lincolnshire

       •    The economic downturn will affect hotel operating profits and this will lead to
            cutbacks in essential refurbishments and capital improvements to the existing stock.
            It will also put a break on developer interest. This is likely to prove the biggest barrier
            to new hotel development in Lincolnshire in the short to mid-term.

       •    Budget hotel development is most likely to prove the exception as Premier Inn and
            Travelodge continue to progress expansion plans.



3.14   Going Down: Independent 2 and 3 Star Hotels
       Independent operated 2 and 3 star hotels have become increasingly rare in cities.

       They only continue to be a major presence in rural areas and small towns where there is
       not enough commercial trade to support investment by the chains.

       In places like Skegness, there is still demand, especially from older people, for
       independent hotels in older properties that compete largely on price. It is not likely,
       however, that new generations of empty nesters will have the same tastes. The evident
       weakness of demand in Skegness is indicative of how this market is in long term decline.



       Implications for Lincolnshire

       •    The consultations for this work has shown that many of the independent operators in
            the rural and market town parts of the county have upgraded and are competing on
            quality and distinctiveness as opposed to price. This is the best strategy. Several of
            them could perhaps use assistance with their upgrading, especially with interior
            design, to help them make the most of the investment and get their offer ―spot on‖.

       •    There is a concentration of stock on the coast, largely in Skegness, that probably does
            not have a viable future as visitor accommodation. A sensible financial return could
            not be secured from upgrading it and, in most cases, it would not be a sensible use of
            public funds to sustain it. This seems to require a managed approach to conversion of
            that stock back to quality residential accommodation. That itself may require public
            sector funding intervention.



3.15   Going Down: Investment in Country House Hotels
       There was a fashion in the 1980s for converting historic rural properties into smart hotels,
       typically with highly rated restaurants. It proved to be difficult to make money from them,
       however, especially given the high cost of restoring and converting historic properties.
       There has since, as a result, been little new country house hotel development.




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As discussed above, however, there is a niche within rural hotels for spa hotels and it is
possible that there may be opportunities for this type of development in certain locations
in the county.



Implications for Lincolnshire

There are various large historic buildings in the county that could, theoretically, make
good country house style hotels. It is always possible that someone with passion and deep
pockets might want to try converting one to a hotel, but there it will probably be difficult
to generate that type of activity. Hotel use is not generally a viable use for such buildings.




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4.   Overview of Current Provision and Gaps across the
     County
     There are about 60 hotels with about 2,500 rooms across the county (excluding Butlins).

     As outlined in the previous section, there are many different types of offer in the serviced
     accommodation sector and ways of categorising it.

     As a start, there is a distinct difference between the branded sector and the independent
     sector. Within the former, different brands have subtly different positioning and are aimed
     at different market segments. Within the latter, there are variations of standard that are
     partly encapsulated within the official quality assessment scheme, but there are also
     subtle gradations that are more difficult to pick up – some hotels, for example, achieve a
     ―coolness‖ that is difficult to quantify.

     As Figure 233 shows, in terms of the number of rooms, the offer in Lincolnshire is still
     orientated to the independent sector, but about 45% rooms are now operated under
     brands (including Best Western). Almost all of the development in the past decade has
     been in the branded sector, so this balance will be quite different to what it would have
     been 10 years ago. The change is the result of the development of budget hotels on the
     outskirts of Lincoln and in the south west of the county, serving a combination of
     corporate and leisure trade. Elsewhere, particularly in the east, where corporate business
     is less, independent hotels predominate.


     Figure 23: Lincolnshire Hotel Stock
                                    Properties                        Rooms            Rooms per
                                Number     % of total             Number  % of total    property
     Independent 3 star            26             41%                877      35%         34
     Budget                        11             19%                593      24%         54
     Independent 2 star            17             26%                500      20%         29
     Best Western                   5              9%                188      8%          38
     Branded 3 star                 2              3%                186      8%          93
     Branded 4 star                 1              2%                136      5%          136
     Independent 4 star             0              0%                 0       0%
                                   62            100%               2480     100%         40

     Both the branded and non-branded sectors are somewhat one-dimensional in nature. This
     is particularly true of the branded sector, where two brands represent most stock, but
     there is a certain sameness about much of the offer in the independent sector also. There
     is a notable gap at the top of the market, with only one four star hotel. This is perhaps a
     bit misleading, however, in that several independent hotels in the county which are
     officially 3 star are really operating at four star level. The consultations with hotels for
     this study found that many independent hotels have been investing in upgrading their
     facilities, typically with high aspirations. Some, like the Lincoln Hotel, are achieving a
     distinctive                                                                                    style.




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                                                                     Figure 24: Hotels in Lincolnshire
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                                                                         Hotel                           Location            Rooms Conference Stars      Hotel                     Location            Rooms Conference Stars
                                                                                                                                    Facilities                                                                Facilities
                                                                      1 De Vere Belton Woods             Grantham             136      245      4     33 Angel & Royal             Grantham              29               3
                                                                      2 Holiday Inn Express              Lincoln Centre       118       -       -     34 New England Hotel         Boston                28               2
                                                                      3 The Olde Barn Hotel              Grantham             112      300      3     35 The Crown Hotel           Stamford              26      20       3
                                                                      4 Holiday Inn Lincoln              Lincoln Centre        97      30       3     36 Brachenborough Hotel      Louth                 24      34       3
                                                                      5 Premier Inn Grantham             Grantham              92               -     37 The Queens                Skegness              24               2
                                                                      6 Ramada Grantham                  Grantham              89      200      2     38 Boston West Hotel         Boston                24      100      3
                                                                      7 Travelodge                       Lincoln Outskirts     86               -     39 White Hart                Boston                24      80       3
                                                                      8 Ibis Lincoln                     Lincoln Outskirts     86               -     40 Hemswell Court            Hemswell Cliff        23      200      3
                                                                      9 Best Western Bentley Hotel       Lincoln Outskirts     80               3     41 The Woodhall Spa Hotel    Woodhall Spa          23               2
                                                                     10 Premier Inn                      Boston                73               -     42 Norton Lodge Hotel        Lincoln Outskirts     22      150      2
                                                                     11 The Lincoln Hotel                Lincoln Uphill        72      110      3     43 Best Western Vine Hotel   Skegness              22      105      3
                                                                     12 The Royal                        Skegness              72      100      3     44 Best Western Kings Hotel Grantham               21      20       3
                                                                     13 Southview Park Hotel             Skegness              62      180      4     45 Castle Hotel              Lincoln Uphill        20               2
                                                                     14 Petwood Hotel                    Woodhall Spa          53      200      3     46 Garden House              Stamford              20               3
                                                                     15 White Hart Hotel                 Lincoln Uphill        50      150      3     47 Halfmoon Hotel            Alford                17               2
                                                                     16 Branston Hall & Spa              Lincoln Outskirts     50      200      3     48 Lincolnshire Oak          Sleaford              17      150      3
                                                                     17 The Golf Hotel & Aquasante Spa   Woodhall Spa          50      120      3     49 Beaumont Hotel            Louth                 16      150      2
                                                                     18 The Savoy Hotel                  Skegness              48               2     50 Hillcrest Hotel           Lincoln Centre        15               2
                                                                     19 The George at Stamford           Stamford              47      50       3     51 The Sun Hotel             Gainsborough          15               2
                                                                     20 Travelodge Spalding              Spalding              43               -     52 Cley Hall Hotel           Spalding              15               3
                                                                     21 Premier Inn                      Lincoln Outskirts     41               -     53 Red Lion Hotel            Spalding              15               2
                                                                     22 Travelodge Long Sutton           Long Sutton           40               -     54 Woodlands Hotel           Spalding              15      20       3
                                                                     23 Travelodge Sleaford              Sleaford              40               -     55 Charlotte House*          Lincoln Uphill        14      100      -
                                                                     24 North Shore Hotel                Skegness              36      105      3     56 Bailhouse*                Lincoln Uphill        14               -
                                                                     25 Best Western Kenwick Park Hotel Louth                  34      220      3     57 Tower Hotel               Lincoln Uphill        14               2
                                                                     26 Travelodge South Witham          Grantham              32               -     58 White Hart Hotel          Gainsborough          14               2
                                                                     27 Best Western Admiral Rodney      Horncastle            31      140      3     59 Palm Court Hotel          Skegness              14               2
                                                                     28 Grosvenor House                  Skegness              30               2     60 Washingborough Hall       Lincoln Outskirts     12      50       3
                                                                     29 Travelodge A1                    Grantham              30               -     61 Priory                    Louth                 12               3
                                                                     30 Travelodge Colsterworth          Grantham              30               -     62 Rufford Hotel             Skegness              12               2
                                                                     31 The Lady Anne's Hotel            Stamford              30               -     63 Hickman Hill Hotel        Gainsborough          9        9       2
Page 40




                                                                     32 The Crown Hotel                  Skegness              29               2     64 Advocate                  Market Rasen          7                2

                                                                     * We recognise these establishments are categorised as Guest Accommodation but include them as relevant comparators
                                                                     Figure 25: Travelodge and Premier Travel Inn hotels in and around Lincolnshire
                                                                                                     Doncaster                         Scunthorpe                                 Premier Inn
                                                                                                     · 2 x Premier Inn                 · 1 x Premier Inn                          · Grimsby
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                                                                                                     · 2 x Travelodge                  · 1 x Travelodge                           · 40 rooms




                                                                     Travelodge
                                                                      · Retford
                                                                      · Blythe
                                                                      · Worksop




                                                                     Travelodge
                                                                      · Thorpe on the Hill
                                                                      · 88 rooms
                                                                                                                                                                                                                Premier Inn
                                                                                                                                                                                                                · Lincoln
                                                                                                                                                                                                                · 41 rooms
                                                                     Premier Inn
                                                                      · Newark-on-Trent
                                                                      · 54 rooms
                                                                                                                                                                                                                Travelodge
                                                                                                                                                                                                                · Sleaford
                                                                                                                                                                                                                · 40 rooms



                                                                     Nottingham                                                                                                                                 Premier Inn
                                                                      · 7 x Premier Inn                                                                                                                         · Boston
                                                                      · 4 x Travelodge                                                                                                                          · 73 rooms



                                                                                                                                                                                                                Travelodge
                                                                                                                                                                                                                · Spalding
                                                                                                                                                                                                                · 43 rooms



                                                                     Leicester                                                                                                                                  Premier Inn
                                                                      · 4 x Premier Inn                                                                                                                         · Kings Lynn
                                                                      · 3 x Travelodge                                                                                                                          · 101 rooms




                                                                                             Travelodge           Premier Inn   Travelodge            Travelodge       Peterborough             Travelodge
                                                                                             · Grantham A1        · Grantham    · Colsterworth        · South Witham   · 4 x Premier Inn        · Long Sutton
                                                                                             · 30 rooms           · 92 rooms    · 30 rooms            · 32 rooms       · 3 x Travelodge         · 40 rooms
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Locum has developed a model for categorising different types of destination experience. It
is called the Place Making Mosaic. Experiences on the left hand side of the model are
dominated by corporations – the property tends to be in the ownership of large companies
or finance institutions and the businesses are dominated by branded multiples.
Experiences on the right hand side of the model are independent orientated – the property
tends to be in the ownership of small, local companies, and the operations tend to be
managed independently.             Experiences at the top side of the model compete largely on
quality and those at the bottom side of the model compete largely on price.

Figure 26 gives examples of where hotel experiences fit on this model.


Figure 26: Place Making Mosaic




Plotting the county‘s hotel stock on the mosaic shows that there is very little stock in the
top half of the mosaic.




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Figure 27: Lincolnshire Hotel Stock plotted on Place Making Mosaic




              Branded 4 star
                 136 rooms


                                                               Independent
                               Branded 3 star
                                                Best Western
                                                  188 rooms        3 star
                                  186 rooms
                                                                 800 rooms
                                   Budget Hotels
                                     593 rooms
                                                                        Independent 2 star
                                                                            500 rooms




Lincolnshire Tourism recently commissioned a research study to assess the character of
visitors to Lincolnshire. It showed that there is a clear bias to older markets that like a
functional, low price product. This is entirely consistent with the nature of the
accommodation offer which is orientated towards people of that disposition. This is to
some extent market driven – providers are responding instinctively to the type of people
who are interested in coming to Lincolnshire.

The county is almost entirely lacking in accommodation product for those of a more
―cosmopolitan‖ disposition. These are the people that are the big spenders and like to
take short breaks.




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Figure 28: Gaps in the Lincolnshire serviced accommodation offer




The following seem to be main gaps that the public sector could play a role in helping to
fill through planning policy, site identification and assembly, business support schemes,
and gap funding.

“Quirky” (i.e. independent hotels that are a bit different from the norm)

Although there has been much investment by independent hotel owners, there are only a
few instances where it has produced hotels of distinction that are likely to be highlighted
by the guide books. Locum encountered several hotels where some professional assistance,
particularly in interior design, might help.

Specific opportunities for an offer in this sector include:

•    A ―trendy‖ static caravan holiday park.

•    An ―eco‖ hotel at the Lincolnshire Showgrounds.

•    Rural apart-hotels in market towns, the Fens and the Wolds.

Independent 4 star

The opportunities in this sector are more likely to relate to upgrades of existing properties
and, again, professional assistance might be useful. Most, if not all, of the larger
independent hotels should probably be of four star standard.

Specific opportunities for an offer in this sector include:

•    A restaurant and functions centre with rooms in Louth.

•    Upgrade of the Woodhall Spa hotel.




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Premium Brands/Landmark Independent

Specific opportunities for an offer in this sector include:

•    The combination of the Judges Lodgings and the car park behind it in Lincoln for a
     niche brand like Hotel du Vin.

•    The same for Stamford.

•    A golf resort hotel on the Ping owned course in Gainsborough or in Woodhall Spa.

•    A management contract or franchise for an existing hotel in Woodhall Spa.

•    A ―landmark‖ hotel on the seafront at Skegness.

Mid Market Brands

It seems likely that, in the medium term, Lincoln, especially, could benefit from at least
one brand that is at a higher level than the budget hotels. There are also possible
opportunities for this in Grantham.




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5.    Greater Lincoln

5.1   Current Provision
      There are four main clusters of hotels in and around Lincoln: overlooking Brayford Pool in
      the city centre, in the cathedral quarter area of Lincoln Uphill, the south east satellite
      villages on the major access roads and the same in the south west, North Hykeam area.
      Seven hotels have more than 50 rooms but none are currently above ―upper three star‖
      quality.

      There is strong demand from both the corporate market on week days and the tourism
      market at the weekend. The larger hotels are performing well with high occupancy rates
      between 70-80% and an average room rate from £100-£120.


      Figure 29: Hotel Supply – Greater Lincoln
                                                                    No. of   Conference         Star
                      Hotel                       Location         Rooms      Capacity         Rating
      City Centre
      Holiday Inn Express                   Lincoln Centre            118           0             3
      Holiday Inn Lincoln                   Lincoln Centre             97          30             3
      Hillcrest Hotel                       Lincoln Centre             15           0             3
      The Lincoln Hotel                     Lincoln Uphill             72        110              3
      White Hart Hotel                      Lincoln Uphill             50        150              3
      The Castle Hotel                      Lincoln Uphill             20           0             2
      The Tower Hotel                       Lincoln Uphill             14           0             2
      Charlotte House*                      Lincoln Uphill             14        100       -
      Bailhouse*                            Lincoln Uphill             14           0      -
      Outskirts
      Branston Hall                         SE Satelite                50        200              3
      Premier Inn                           SE Satelite                41           0
      Washingborough Hall Hotel             SE Satelite                12          50             3
      Hotel Ibis Lincoln                    SW Satelite                86           0             2
      Travelodge Thorpe on the Hill         SW Satelite                86           0             2
      Best Western Bentley Hotel            SW Satelite                80        350              3
      Norton Lodge Hotel                    SW Satelite                22        150              2
      Total                                                           791       1,140
      Source: Visit Lincolnshire / Locum Consulting Research
      * We recognise these establishments are categorised as Guest Accommodation but include
      them as relevant comparators

      About 150 additional hotel rooms are planned for the Brayford Pool area. The Holiday Inn
      plans a 50 room extension, and independent company Manor Crest have planning




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      permission for a 100 room 4-star townhouse hotel with function facilities, adjacent to the
      Holiday Inn.

      The 118 room Holiday Inn Express opened in December 2008.

      In Uphill Lincoln, the Bailhouse is planning a 20 room extension. It has a number of
      apartment style units operated as a hotel. Both the White Hart and the Lincoln Hotel are
      undergoing refurbishment, with the White Hart also planning an extension.


      Figure 30: Current Hotel Offer and Gaps in Central Lincoln




5.2   Strategic Issues
      The uphill section of Lincoln has developed a truly outstanding tourism offer. It has
      become an excellent example of a ―Cosmopolitan‖ zone, one in which a historic built
      realm is mixed with a retail and restaurant offer that is distinctive and quality orientated.

      Further planned investments in improving the public realm on Bailgate and making more of
      the Castle will make a further step change improvement to the offer.

      With a cathedral that is one of the finest in Europe, it is an offer that truly ranks as one of
      the best of its kind in the country.

      Locum‘s view is that the quality of the Uphill experience should be more widely known
      and a good start point for this would be sharper branding. Uphill Lincoln seems to be the
      best brand to use in conveying to the rest of the world that there is something special
      here.




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      The hotel offer in the Uphill section is edging towards being a feature of the area. The
      Lincoln Hotel is being upgraded in a ―funky‖ style that is the kind of thing that could get it
      into the Good Hotel Guide and could generate media coverage.

      The White Hart has upgraded its public areas and has been working on the rooms, and
      Bailhouse has plans to add about 20 rooms.



5.3   Development opportunities


      Branded Townhouse Hotel

      The combination of the Judges Lodgings and the car park to its rear seems to be a prime
      opportunity for a hotel. The Judges Lodgings is a County Council owned property situated
      on Castle Square on Lincoln Hill. The best use would probably be a top of the range
      boutique brand such as Hotel du Vin, preferably with a spa. This would become a
      destination in its own right and would immediately add catchet to Uphill Lincoln. It is a
      truly prime location and worth concerted effort to try and engineer a deal.


      Figure 31: Judges Lodgings




      The building has a Georgian façade and 1940‘s extension to the rear. The building used to
      be accommodation for the judges using the neighbouring Law Courts but is now used by
      the council as an events venue for formal functions, dinners and as a training space.

      As you enter the building from the Georgian front door, there are two large reception
      rooms to the left and right. Above them are two large bedrooms. The extension part of the
      building has about 10 small bedrooms of low quality and standard. The property suffers
      from subsidence with the extension sinking and pulling the Georgian façade backwards,
      which has led to involvement from English Heritage.

      Behind the property is the car park of the White Hart Hotel. It is believed that the hotel
      has development plans for the land and development details of a hotel extension are




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      emerging at present. It would seem to be a pity if the car park was developed without
      including the Judges Lodgings.

      If the council were to sell in the future, they would retain a strip of land running along the
      Castle side of the Lodgings to give the public through access. Historically, there was a lane
      here called St. Paul‘s Lane.

      The property is in an excellent location, situated between the Castle and Cathedral. The
      Georgian façade gives character and charm whilst there is potential for a modern
      extension development to the rear of perhaps 50 rooms.



      Mid Market Branded Full Service Hotel

      Even with the proposed extension to the Holiday Inn and the opening of the Holiday Inn
      Express, there seems to be a gap in the branded sector, especially in the mid-range full
      service niche, of which Jury‘s Inn is a classic example (the new Ramada Plaza in
      Southport, shown in Figure 47, is an example of this type of hotel and the way in which it
      is likely to be delivered). The proposed Modus Lindongate development scheme would
      seem to be a good opportunity to address this.

      An apart-hotel such as Staybridge would also be a good option, although considerably more
      difficult to achieve.



      “Eco-hotel” at The Lincolnshire Showground

      Lincolnshire Showground is in West Lindsey but has been included in the Greater Lincoln
      area in this report since it is only 2 miles north of the city centre (on the A15).

      Lincolnshire Showground is a 270 acre multi purpose event facility that is home to the
      annual Lincolnshire Show, a national scale agricultural show that attracts 60,000 visitors
      each year. Total visitor numbers for the Showground are estimated at around 100,000 per
      year.

      Management at the Showground have diversified their commercial offer to include year
      round events and programming as part of the new £7 million Lincolnshire Events Centre
      (the EPIC Centre). EPIC is a multi purpose events venue, designed as an exemplary low
      carbon, environmentally innovative building. Adding an equivalent hotel would create a
      unique offer in the UK. It is likely to require a subsidy, however, if it is to be deliverable.



5.4   Recommended Actions
      •    Work with the owners of the White Hart Car Park and the Judges Lodgings to see if a
           single site can be achieved and then marketed to a company such as Hotel du Vin.




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•    Encourage development of a mid-market full service hotel, as opposed to a budget
     hotel, in the city centre as part of the Modus development.

•    Work with Lincolnshire Showground to help deliver the eco-hotel there.




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6.    North West (West Lindsey)

6.1   Current provision
      Hotel provision in the West Lindsey district in the North West is more or less limited to the
      9 room Hickman Hill Hotel, the 15 room Sun Hotel and the 14 room White Hart hotel, all in
      Gainsborough.

      Hemswell Court on the A631 at Hemswell Cliff is an interesting functions centre, with 23
      rooms of four star standard, that is performing well, but it only lets its rooms to groups
      that are attending functions. A similar operation is The White Heather which is a
      banqueting and functions centre with limited accommodation at Caenby corner on the
      A631.

      The three hotels in Gainsborough appear to operate around 55% occupancy. This is largely
      driven by the corporate sector in the town. Hickman Hill claims that corporate business
      accounts for as much as 90% of their total room night demand.


      Figure 32: Sun Hotel and Hickman Hill Hotel, Gainsborough




      Gainsborough in particular attracts significant corporate room demand from local
      businesses that include PING Golf, Gainsborough Golf Club, manufacturing firms and The
      Sands Jazz club.

      Market share is being lost back to Lincoln and Doncaster.




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6.2   Strategic issues
      The successful Marshall‘s Yard development has shifted the centre of gravity of the town
      to the east. The west side of the town centre has the potential to be particularly
      attractive because of the proximity to the river and the location there of Gainsborough
      Old Hall and the Church. There has been some attractive development on the river front,
      although there has also been some inappropriate development there.

      The Guildhall, vacated by West Lindsey Council, is at the centre of a strategically
      important council-owned site which extends towards the Market Place in the town centre.
      The Council issued a development brief in April 2007 and would favour hotel use on the
      site.

      A masterplan for the town, called Gainsborough Regained, was prepared by Gillespies on
      behalf of West Lindsey District Council, Lincolnshire County Council and Lincolnshire
      Enterprise in 2007. It does not seem to seem to, however, address holistically how the
      whole area incorporated by the church, the Old Hall, the Guildhall site and the riverfront
      can be made into a historic quarter that is a bit special.


      Figure 33: “Old Hall” Quarter




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      This area seems to need a more holistic development strategy.




6.3   Development opportunities


      Gainsborough Town Centre Budget Hotel

      The most immediate opportunity seems to be for a budget hotel. Premier Inn and
      Travelodge would be the most obvious. Premier Inn have looked at out of town sites.

      It would be preferable if this was to be located within Gainsborough town centre so that it
      can play a role in the ongoing regeneration of the town centre. A location on Trinity
      Street, where it would have visibility, would seem to be optimal.




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Figure 34: Possibilities for lodge hotel development in Gainsborough




Finding a site on Trinity Street in proximity to Marshall’s Yard would probably
be optimal in terms of town centre regeneration.


There is understandable concern that a budget hotel might not architecturally be of the
quality that the town aspires to and is consistent with the conservation area in the town
centre. The budget hotel chains increasingly, however, put up buildings that are sensitive
to their environment.



Full service independent-orientated hotel on Gainsborough Riverside

The Council envisages hotel use as the best option for the Guildhall site and has been
marketing the site for that purpose. It has had some interest.

This is seen as providing an anchor on the riverside side of the town to balance the effect
of Marshall‘s Yard.

Especially in current market conditions, it is not likely to be easy to secure a development
for that site, partly because the town is on the small side to support a hotel of quality and
partly because the centre of gravity in the town has shifted to the other side and the site
does not have high visibility. It is quite likely that the Council will have to see this as a
longer term opportunity.

That area does, however, seem to have potential to be exceptionally attractive, especially
if the Old Hall and Church can be integrated into a very quality mixed use ―heritage
neighbourhood‖ that extends to the waterfront.

Unquestionably, achieving a hotel of quality on the site would be good from a regeneration
point of view and a good fit with a heritage-waterfront zone of quality that would make
Gainsborough a bit special.

Possibly the best way of making it happen might be:

•    Trying to achieve it as part of a larger and more comprehensive mixed use
     development of the area.



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      •    A greater focus on the food and beverage and functions aspect than the rooms.



      Golf Resort

      Ping is a world class company, the ―Rolls Royce‖ of golf equipment, and owns a world class
      golf course in the town where people from around the world come to be fitted.

      It adjoins and area of the town which is designated for development. This seems to be an
      opportunity for a golf resort type development.



      Roadside Budget Hotel

      A budget hotel at a major road junction seems an obvious hotel development opportunity.
      Outside of Gainsborough, the junction of A15/A631 (Caenby corner) would be a good
      location. A budget hotel in that area would serve a substantial catchment, not least the
      antiques centre at Hemswell Antiques Centre and Market Rasen Race Course.



6.4   Recommended Actions
      •    Look for possible sites for a budget hotel in the town centre and present them to the
           main operators, perhaps in conjunction with a developer.

      •    Consider how the waterfront hotel could fit within a larger scheme.

      •    Approach budget hotels to ask them if they have considered Caenby Corner. Identify
           the sites as preferred locations for this type of development.




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7.    Wolds

7.1   Current provision
      This study has included Market Rasen, Louth, Horncastle and Woodhall Spa within its
      definition of ―Wolds‖.

      Most of the current hotel provision is centred around the former spa resort Woodhall Spa,
      which is the home of the National Golfing Centre. There are three hotels there of 3 star
      standard which appear to perform at around 60-65% annual room occupancy. All three
      have had substantial investment or are planning substantial investment. There is a mix of
      business including golf parties, air force heritage and reunion visits, tourists, and business
      generated by the RAF base at Coningsby. The Petwood, in particular, has a substantial
      functions operation.

      The Admiral Rodney at Horncastle, which is part of the Best Western Consortium, also
      performs well and also benefits from golf demand from Woodhall Spa.

      Louth‘s two main hotels, the Brachenborough and the Kenwick Park, are located outside of
      the town centre, to the north and south respectively. The Brachenborough is part of a
      small group and has been upgraded in townhouse style. It has a bistro operation which
      appears to be trading very well.

      There are no significant hotels in the Market Rasen area, although the Advocate Arms has
      just opened in Market Rasen as a gastro-pub with 7 rooms.


      Figure 35: Hotel supply – Wolds
                                                                     No. of   Conference         Star
      Hotel                                          Location       Rooms         Capacity   Rating
      Petwood Hotel                              Woodhall Spa 53              200            3
      The Golf Hotel & Aquasante Spa             Woodhall Spa 50              120            3
      The Woodhall Spa Hotel                     Woodhall Spa 23              0              2
      Advocate                                   Market Rasen 7               0              2
      Halfmoon Hotel                             Alford             17        0              2
      Best Western Admiral Rodney                Horncastle         31        140            3
      Kenwick Park Hotel                         Louth              34        220            3
      Brachenborough Hotel                       Louth              24        34             3
      Beaumont Hotel                             Louth              16        150            2
      Total                                                         255       864
      Source: Visit Lincolnshire / Locum Consulting research




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7.2     Strategic issues


7.2.1   Louth

        Louth has a somewhat isolated location and is not large enough, probably, to attract
        substantial high street retail development.

        It has therefore been able to develop and sustain a substantial independent orientated
        retail offer, including a good selection of independent food shops.

        Having been prosperous in past times, the townscape is excellent and there are several
        interesting landmark buildings, including the outstanding church, which is attractively
        presented.

        All of this gives Louth potential to be a significant destination.

        It is the only Wolds town featured in the Rough Guide to Britain which states that ―with its
        striking church and antique centre, Louth is easily the most enticing of the region‘s
        towns‖.

        Unfortunately, the quality of the town is undermined by the poor public realm and the
        way in which traffic is allowed to dominate. Given that the town has a bypass, there is no
        obvious reason why it should be like this.


        Figure 36: Louth




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A townscape that could be very attractive and has an enjoyable range of shops
is spoilt by the dominance of vehicles and the poor quality of the public
realm.


Town centres are at their best when they provide means for social interaction. In
particular, people these days particularly like to be able to enjoy a meal or a drink al
fresco and watch the world go by. The examples in Figure 37 are all towns similar to Louth
that have made it possible for people to enjoy ―hanging‖ out in the town centre.


Figure 37: Clockwise: Breukelen, Holland; Uppsala, Sweden; Trollhatan,
Sweden; Bolsward, Holland.




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Towns in Holland are also exemplars of the quality of public realm that places like Louth
should aspire to. The first requirement is a better balance between cars and pedestrians.
Also, in a relatively small, compact community like Louth, getting around by bicycle
could/should be the norm for people of all ages. People of all ages should find it a
pleasure to cycle to the shops.


Figure 38: Drachten, Holland




The town of Drachten has been particularly radical in its treatment of public
realm and in developing the concept of “Shared Space” that has been gaining
currency with progressive town planners worldwide. Ashford in Kent has
become the first district in the UK to fully implement the principles. The idea
is to remove the clutter from streets and to reduce the differentiation
between pedestrian, cycle and vehicular space. In Drachten, traffic lights,
Give Way/Stop signs, traffic barriers and heavily engineered kerbs have all
been removed. The traffic has slowed and accidents are fewer because drivers
are forced to concentrate. Aesthetically, the results are immaculate. As with
most towns and cities in the Netherlands, there is no asphalt in the entire
central area of Drachten. The surfacing is of exceptional quality throughout.
Naturally, it is exceptionally cycle friendly and, therefore, it is not surprising
that people of all ages choose to get about by cycle.




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Figure 39: Franeker, Holland




As with almost all small towns in Holland, Franeker shows how good it is
possible for the built environment to be.


There seems to be a particular need for a town initiative to focus on improvement of the
built realm. It is a situation where a town centre masterplan seems to be particularly
called for.

Louth is not unique in this respect. Other towns in the county would probably benefit
from the same approach, perhaps not least Stamford, and the same comparisons and
considerations apply.

There seems, however, to be a particular opportunity to create something special here,
which may be a case for giving it priority.

The presence of a strong independent food retail cluster, and its location at the heart of a
major food producing area, suggests that there could be potential for Louth to focus on
food as its main ―theme‖ in the way that Ludlow has so successfully done. This could be




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        considered in detail as part of a visioning and masterplanning exercise (but, if there is
        buy-in, would not have to wait for physical improvements to the town centre).



7.2.2   Woodhall Spa

        Woodhall Spa has a distinctive sense of place and probably has potential as a destination.
        Its main tourism asset is the Golf Club. It is the home of the English Golf Union, the
        governing body for men‘s amateur golf in England. There are two courses, one of which is
        rated in the top 100 in the world. It also has training facilities that are amongst the best in
        Europe.

        This is one of the best golf tourism products in the country. About 30,000 people visit it
        annually but there is still capacity and the potential is not currently fulfilled, partly
        because the accommodation offer does not match up to the quality of the golf facilities.
        As one stakeholder described it, there is a ―5 star golf product supported by a 3 star
        infrastructure‖. This is a particular issue for the club when trying to find accommodation
        for very affluent players that it attracts on a not infrequent basis. The Club expressed
        considerable frustration with the state of the accommodation situation and said that it
        would consider having a special partnership with an operator that was prepared to invest
        in establishing a product at a higher quality level.

        The other considerable advantage that Woodhall Spa has is, of course, its thermal spa. The
        spa building itself is derelict and it would be very costly to restore or rebuild it.



7.3     Development opportunities


        Budget Hotel on Northern Outskirts of Louth

        Louth has a bypass for the A16 running north-south with larger businesses clustered around
        the new Fairfield business enterprise park to the north of town. A limited service budget
        hotel in this area seems like a good opportunity. East Lindsey Council has highlighted a
        plot of land opposite the park as a potential hotel development site.

        A developer has been in conversation with Whitbread about locating a budget
        Travelodge/Premier Inn style operation on the site. Marstons pubs are also rumoured to be
        interested, but not for accommodation.



        Townhouse hotel/Gastro pub with rooms in the centre of Louth

        It is unlikely that a hotel of substantial size could be sustained in the town centre, but
        there may be a niche there for a quality smaller hotel, probably with the catering and
        functions offer forming a dominant part of the business. Such a development could be a
        key anchor in terms of stimulating the development of the ―foodie‖ cluster and positioning



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Louth as a destination. The ideal would probably be a development in the very heart of
the town.

Although it would require detailed consultation with stakeholders in the town, the Town
Hall might be a candidate for this. Using it as a restaurant/functions centre could actually
make it more of a community resource than it is now.


Figure 40: Louth Town Hall




There are other development possible sites, including the Woodman Pub on Eastgate,
which is owned by Enterprise Inns, one of the largest leased and tenanted pub company's
in the UK. They are currently seeking a new tenant for it.


Figure 41: Woodman Pub, Louth




There is a small possibility of hotel development on The Old Cattle Market, a 5 acre site
within walking distance of Louth town centre. It is on the market zoned for commercial
mixed use.




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      Enhance Current Supply at Woodhall Spa

      The most immediate way to strengthen the hotel offer of Woodhall Spa would appear to
      be to work with the Petwood and Golf Hotel to assist them in developing and
      implementing their investment plans and, especially in the case of the Golf Hotel, to help
      them achieve best practice.

      The Petwood has a good niche as a ―3.5 star‖ and has maintained a consistent standard in
      that niche. It is a good product for the nature of the market and there is no obvious reason
      for substantial change.

      The Golf Hotel, which is alongside the golf course, has been investing in improving the
      rooms and has created a spa facility, the only one that uses the spa waters. They would
      like to add 50 rooms to create a total of 100 rooms. This property could potentially
      provide a larger, top of the range hotel with quality leisure facilities that Woodhall Spa
      would benefit from. It would probably be better placed to do this, however, if it was
      under the management of a quality operating company, preferably with a well-known
      brand. This might deliver a better return for the owners than running it totally
      independently.

      The Petwood Hotel also has planning permission submitted for 20 more bedrooms in an
      extension building.



      Golf Resort

      Alternatively, or in addition, there may be potential for a golf resort at Woodhall Spa,
      incorporating the golf club, hotel and a range of leisure facilities. The English Golf Union
      has indicated that it would not envisage doing such a development themselves but could
      make land available to a development partner.



      Market Rasen

      The race course would welcome a hotel development and the idea has been incorporated
      into the masterplan, which includes a lido-spa leisure facility. A hotel can provide a good
      fit with a spectator facility like this because hospitality facilities are good for conferences
      and functions. There is not very much, however, to generate trade in the Market Rasen
      area and, especially in the current market conditions, it would be challenging to interest
      an operator or developer.



7.4   Recommended Actions
      •    Undertake a town ―visioning‖ exercise as a prelude to preparation of a town centre
           masterplan in Louth.




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•    Actively seek a suitable town centre site in Louth for a quality restaurant or pub with
     rooms, including assessing the possibility of the town hall being used for that purpose.

•    Discuss with food related stakeholders in Louth whether there is potential and interest
     in working to position the town as a ―Ludlow of the East‖.

•    Talk to the owners of the Woodhall Golf Hotel about the possibility of involving an
     operating company in their development plans. Investigate whether there might be
     public funding available to development of the spa as a landmark tourism
     development project.

•    Organise a visit by potential golf resort developers to examine the opportunities (this
     could include Gainsborough).




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8.    The Coast

8.1   Current provision
      The hotel supply of the coastal region is dominated by the traditional resort
      accommodation of Skegness. It includes hotels, guest houses and caravans. There are no
      significant hotels at Mablethorpe.

      In addition to the hotels, there are many bed and breakfasts and guest houses.

      Butlins is the overwhelmingly dominant presence. It has about 10 times more rooms than
      all of the other hotels in the area combined. It has plans for a 200 room hotel.


      Figure 42: Hotel supply – Coast
                                                        No. of     Conference         Star
      Hotel                             Location        Rooms          Capacity   Rating                  Facilities
      Butlins                         Skegness       3,200         2,000          2          Family leisure resort
      The Royal                       Skegness       72            100            3          Restaurants, bar
      Southview Park Hotel            Skegness       62            180            4          Restaurant, bar, leisure facilities
      The Savoy Hotel                 Skegness       48            0              2          Restaurant, bar
      North Shore Hotel               Skegness       36            105            3          Restaurant, bar, golf course
      Grosvenor House                 Skegness       30            0              2          Bar, café
      The Crown Hotel                 Skegness       29            0              2          Restaurant, bar, close to golf
      The Queens                      Skegness       24            0              2          -
      Best Western Vine Hotel         Skegness       22            105            3          Restaurant, bar
      Palm Court Hotel                Skegness       14            0              2          -
      Rufford Hotel                   Skegness       12            0              2          -
      Total - incl Butlins                           3,549         2,490
      Total - excl. Butlins                          349           490
      Source: Visit Lincolnshire / Locum Consulting Research

      Southview Park, a 62 bedroom 3 star resort hotel on the outskirts of Skegness appears to
      be the most comprehensive hotel offer in the area. It operates at around 55-60%
      occupancy, charging £70 per room night for a standard double with breakfast.

      The Royal is the other relatively large hotel. It is a beautiful Victorian ―Grand Hotel‖ type
      property. It recently changed ownership and has had investment over the last two years.
      Rack rate for a standard double room is £59.

      Harrison Developments (York) have been actively seeking potential budget hotel
      development sites in partnership with Whitbread on the Wainfleet road and on the
      Skegness foreshore.

      Blue Anchor are understood to be marketing 22 caravan sites for sale through Knight
      Frank.




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8.2   Strategic issues


      Difficult Circumstances

      The coastal resorts in Lincolnshire are like most others in the country in that they have
      been the victim of rapidly changing market conditions, with their customers increasingly
      taking their holidays abroad. Only a handful of Britain‘s traditional resorts have escaped
      without severe problems, and there have been few new hotels in them.

      There are some green shoots nationwide. Southport, for example, which Locum has been
      advising since 2003 on repositioning itself as ―England‘s Classic Resort‖, seems to have
      reached a tipping point in its fortunes. After having no new hotels, apart from a
      Travelodge, for 4 decades, a 70 room town house boutique hotel has opened on Lord
      Street and is trading successfully, and a 150 room Ramada Plus is soon to open adjoining
      the refurbished conference centre overlooking the Marine Lake. The latter development
      had public funding support via the regional development agency.

      In Morecambe, the innovative developers, Urban Splash, have, with funding from the
      regional development agency, restored the art deco Midland Hotel and are planning to
      operate it themselves as part of a chain of small, prestigious hotels.

      In Blackpool, which is totally dominated by low-mid market independent product,
      following success in creating a B&B voted as the best in Britain, an innovative
      entrepreneur has converted a 2 star property at South Beach into a very high quality
      boutique hotel. Blackpool Pleasure Beach have opened the first major new hotel in the
      resort for many years, called Big Blue, and found it to be a big success.

      Locum has been doing a lot or work recently in Jersey where there has been a tidal wave
      of investment, mainly by ―second generation‖ proprietors of family owned hotel
      companies, all of it pitched at an exceptionally high level with top class spa facilities. The
      tipping point in that case was the decision by a family owned company, when the son of
      the man who built it up took over, to convert a 2 star property into a top of the range
      town house hotel with spa and the Island‘s first Michelin starred restaurant, called the
      Club. Such was its success that about six others followed suit.

      The circumstances are different in that Jersey has a large financial services industry, but
      it does show how, sometimes, the brave actions by one company can have a domino effect
      on others. In the coastal areas of Lincolnshire, with the exception of Butlins, it is more
      likely that investment will be similarly home grown rather than be through outsiders.



      A better understanding of the static caravans needed

      There are, reputedly, about 30,000 bed spaces in static caravans in the vicinity of
      Skegness.




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There seems to be little understanding, however, of exactly what they are actually used
for.   It appears that they represent a mixture, de facto if not technically, of homes,
second homes and some holiday accommodation. The latter probably represents a
relatively small proportion.

They generally seem to be regarded as ―tourism‖ facilities, but it is quite likely that their
tourism impact is considerably overstated and that the size of the permanent and semi
permanent community that lives there is understated.

It would seem to make sense from many perspectives to have a considerably better
understanding of the true nature of the static caravan parks.



Ingoldmells is the true tourism hub and could perhaps benefit from a separate
development and marketing strategy

It appears that a larger proportion of the true coastal tourism business than is commonly
realised is concentrated not in Skegness but in Ingoldmells, where Butlins and Fantasy
Island between them are major ―star‖ attractions. It is, de facto, a resort in its own right,
possibly the largest of the kind in the UK.

Substantial investment has been taking place at Butlins and they plan a hotel on the model
of the one that they have built in Bognor Regis. With the possible exception of a budget
hotel in Skegness, this is the most likely investment that there is to be.


Figure 43: Butlins Hotel under construction in Bognor Regis




Bourne Leisure announced in January 2009 the opening of a new £20m hotel at
its Butlins Bognor Regis resort in August 2009. The Ocean Hotel will offer 200
bedrooms equipped with new features such as rainfall showers, colour change
lighting, widescreen televisions and DVD players, as well as private balconies
overlooking the sea and the South Downs. Family rooms will also contain a
separate children’s den for increased privacy. Additional facilities will include
a restaurant and bar, a spa and landscaped gardens.




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There seems to be little thought currently as to how it could work more effectively as a
resort, even create a brand presence of its own. This seems to be another case where a
―vision‖ and masterplan could pay big dividends.



Skegness seems to need a change of strategy

Skegness is typical of many resort towns that has fallen on hard times as a result of
changing holiday patterns. The idea that these trends will suddenly reverse and that
tourism will revive seems unlikely. On the contrary, it seems more likely that decline will
continue. It is unlikely, in particular, that the next generation of ―empty nesters‖ will be
as enthusiastic about the sort of hotel and guest house on offer as is currently the case.

Excluding the Southview Park Hotel, which is outside of the town, there are only about 280
hotel rooms in the towns, less than in many single city hotels. They are also operating at
achieved income per room that is far below a typical city hotel. They are not, therefore,
realistically a major economic driver.

The seaside towns that have most successfully withstood the decline of UK seaside
holidays have been those that have seen themselves as towns by the sea rather than
resorts. It would seem that the greatest hope for Skegness would be to reinvent itself as a
very attractive town by the sea, where tourism is seen as a part of the general economic
mix, rather than a resort, where tourism is seen as the heart of the economy.

One of the implications of doing this would be a deliberate attempt to change the
character of the seafront, turning away from the bucket and spade dimension and instead
focussing on something that does more to enhance the quality of the town as a place to
live and work.

It is possible that a new hotel, using the casino licence, could play a part in this.

For example, the town might aim to create a high quality ―water garden‖ on the seafront
area, perhaps even with an admission charge. A hotel with extensive food and beverage
and functions facilities overlooking the sea could be a focal point of this. It could even
include the UK‘s first thalassotherapy spa (see Figure 15 above), which could give it
landmark status.

Something of this sort of quality might stand a chance of helping to redress the image of
Skegness and, as with the Midland Hotel in Morecambe, might be worth investing public
funds in because of the regenerative impact it could have.




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Figure 44: Tower 23 Hotel, Pacific Beach, San Diego




Ultra cool hotel overlooking the sea with very substantial food and beverage
offer making the most of the seaside location. If Skegness could achieve
something like this, it could play a key role in its regeneration. It would
require, however, an outstanding location, gap funding and, perhaps, the use
of the casino licence.




Skegness might benefit from a proactive Planning Policy for conversion of obsolete
visitor accommodation to residential

There is currently probably a substantial amount of visitor accommodation, especially in
Skegness, that is essentially obsolete and is being utilised in a sub-optimal way: this
includes a number of small hotels, bed and breakfasts and guest houses operating
inefficiently in the middle and bottom end of the market.

Not all hotel, guest houses and bed and breakfasts are being operated inefficiently. Many
provide a valuable part of the low cost serviced accommodation offer. Some are operated
as ―lifestyle‖ businesses, quite validly.

Overall, however, there is too much visitor accommodation of this nature for the likely
demand.




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      Some owners would probably give up the business if they were able to realise a market
      value for the property or secure a replacement residence in a reasonable location.

      Some of the visitor accommodation could be effectively upgraded. In many instances,
      however, there is not sufficient inherent quality in the property to generate a worthwhile
      return on investment from upgrading. The tourism market has turned away from such
      property. It would probably be better utilised as residential.

      The main aim should be to avoid properties deteriorating into homes in multiple
      occupation. A managed approach to this, perhaps involving a housing association, seems to
      be the optimal way of proceeding.



8.3   Development opportunities


      A Budget Hotel on Skegness Seafront

      Locum‘s view is that not only is there likely to be demand for a budget style hotel but it
      would be to the advantage of the town to have that type of product. It would probably
      provide incentive to other operators to improve their standards.

      The Council is, rightly, concerned not to allow a building of poor quality in a prime
      location on the seafront, but many recent budget hotel developments have had
      architecture of reasonable quality. The ideal would be a site on the seafront near the
      centre of town that is ―almost prime‖.



      A “Hip” Caravan Park

      Static caravans provide an ideal holiday option for many people, especially young families.
      It could be interesting to try and update the image by persuading someone to do an
      updated version by focusing on art/design in a slightly ―arty-kitsch‖ way.



      Landmark seafront hotel

      As discussed above, this could be a key regeneration initiative, but is likely to require gap
      funding and should ideally be the centrepiece of a holistic regeneration programme aimed
      at changing the image and nature of Skegness.



8.4   Recommended Actions
      •    Work with the key stakeholders in Ingoldmells to develop a vision and plan for the
           development of the resort there. Focus on this as the main opportunity for holiday
           tourism development on the coast (indeed, probably in the East Midlands region as a



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     whole). Actively encourage and support the development of the proposed Butlins
     hotel.

•    Try to interest an operator in creating a ―hip‖ caravan park and assist in providing
     professional help with the design and marketing. Do this via the proposed Hotel
     Excellence programme.

•    Actively seek an optimal site for a budget hotel on the Skegness seafront, preferably
     as near to the town centre as possible.

•    Develop a vision and masterplan for Skegness, starting with the aim of creating an
     ―exceptionally pleasant town by the sea‖.

•    As     part      of    that,      undertake        an     options   appraisal   on   a   landmark
     hotel/casino/thalassotherapy spa combination.




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9.    The South

9.1   Current provision
      For the purpose of this study, ―The South‖ is defined as including Sleaford, South
      Kesteven, Boston and South Holland.

      Much of the demand for hotels in the area is generated by business travellers to
      Peterborough and Grantham. This has driven development in the budget sector and led to
      the emergence of some high quality B&Bs.

      The Grantham area has the highest density of hotel supply with around 570 rooms. This
      includes the Belton Woods resort and 165 budget hotel rooms (1 x Premier Inn and 3 x
      Travelodge).

      The main hotel in Grantham is the Angel and Royal on the High Street, an independent 3*
      level property. The Angel and Royal is owned by Ashdale Hotels and has a recently
      modernised contemporary interior and old coaching inn exterior. It is usually busy from
      Tuesday to Thursday with business visitors. Leisure demand is smaller and comes from the
      grey market and from weddings held at the De Vere nearby.

      Just out of town, the Premier Inn is doing very good business and is apparently turning
      business away during the week because it is full, achieving an average occupancy of 80%
      and an average room rate of £55. The current capacity of 60 rooms will be increased in
      January to 94 rooms with the opening of an extension.

      The nearby Ramada, a Marriott Hotel until November 2007, is, however, filling rooms with
      low value coach parties, despite having the biggest meeting rooms in the area which
      attract both corporate and wedding bookings. The fact that the hotel was not upgraded to
      retain Marriott brand may indicate a perceived weakness in demand for 4*.

      In the south east of the county, there has been development in the budget sector with
      Travelodges at Spalding and Long Sutton. Boston has a Premier Inn and the new Boston
      West Hotel, with 24 rooms, at the golf course. There is also a Travelodge at Sleaford.

      The majority of hotel demand in Spalding comes from business travellers, although there is
      some leisure use, particularly linked to events. Spalding visitors commute to Grantham and
      Peterborough when higher grade (3-star plus) accommodation is required.

      The opening of the A1073 in 2010, which will improve access to Peterborough, is likely to
      add to the need for suitable business accommodation.

      The most recent hotel to open in Spalding is a 43 bedroom Travelodge at Springfields, a
      mixed use site with a factory outlet centre and exhibition venue. The hotel is achieving a
      high average occupancy of 75% and a good average room rate of £40. The hotel is often
      full on week nights between Monday and Thursday when it is filled by people working n the
      area. The leisure demand, primarily on Fridays and Saturdays, is often linked to the events



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which take place in Springfield, such as wedding fares and motorcycle shows. The fact that
the hotel can accommodate families is also particularly important since the independent
properties in the area rarely have family rooms.

Stamford, in South Kesteven, has three hotels, although there are several upper end B&Bs
and guest houses, all of which have very high occupancy levels. The hotels are also doing
very well, averaging between 70% and 80% occupancy.

Much of the demand comes from business travellers to Peterborough and Grantham
although the leisure market is also important, particularly linked to the Burghley horse
trials and ‗film tourism‘. The attractiveness of the town also brings a large wedding
market and the proximity to the A1 makes it a popular stopping off point.

The George is considered to be the best hotel in the town. It is a 47 bed 3* property which
has traditionally enjoyed a good reputation, one that is deserved because of the
outstanding, slightly quirky, service it provides, albeit the décor is perhaps now a little
tired. We understand they operate at a high occupancy (about 80%) and turn business away
at peak periods.

The Crown Hotel is a more contemporary 3* property with 26 bedrooms, in the town
centre. Although it is also achieving good rates, and is very busy, it is on a noisy street.

The only other hotel in the town is the Lady Anne‘s Hotel, owned by the Burghley Estate
and operated by the Hastings family. The property is in a poor state and is not quality
assessed. The owners would like the property to be redeveloped and extended but there
have been planning issues relating to the scale of proposed development.

With demand exceeding supply much of the time, the existing properties are able to
command particularly high prices which may not always reflect the standards that they
offer.

Boston has limited accommodation supply although it is thought to be largely adequate for
the existing demand. There is limited business need and the requirement for rooms for
leisure visitors is met mainly by B&Bs.

Of the two hotels in Boston, the White Hart is the considered the best. It is a stylish,
traditional property with a modern interior, on the river. It is doing very well and the
owners may intend to extend the accommodation, linked to a residential development.

There are a few budget hotels outside the town, including a Comfort Inn and a Travel
Lodge.

South Holland in general lacks high quality accommodation. There is only one 3-star
property. There is no resort style hotel or hotel with decent meeting facilities.




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      Figure 45: Hotel supply – South
                                                             No. of    Conference      Star
                    Hotel                   Location        Rooms          Capacity   Rating                Facilities
      Premier Inn                       Boston                  73               0        2 Limited service
      New England Hotel                 Boston                  28               0        2 Restaurant
      Boston West Hotel                 Boston                  24            100         3 Golf, catering
      Whitehart                         Boston                  24              80        3 Restaurant, bar
      De Vere Belton Woods              Grantham               136            245         4 Country golf resort
      The Olde Barn Hotel               Grantham               112            300         3 Restaurant, bar, spa
      Premier Inn Grantham              Grantham                92               0        2 Limited service
      Ramada Grantham                   Grantham                89            200         2 Restaurant, bar
      Travelodge South Witham           Grantham                32               0        2 Limited service
      Travelodge A1                     Grantham                30               0        2 Limited service
      Travelodge Colsterworth           Grantham                30               0        2 Limited service
      Angel & Royal                     Grantham                29               0        2 Restaurant, bar
      Kings Hotel                       Grantham                21              20        2 Restaurant, bar
      Travelodge Long Sutton            Long Sutton             40               0        2 Limited service
      Travelodge Sleaford               Sleaford                40               0        2 Limited service
      Lincolnshire Oak                  Sleaford                17            150         3 Restaurant, bar, catering
      Travelodge Spalding               Spalding                43               0        2 Limited service
      Cley Hall Hotel                   Spalding                15               0        3 Restaurant, bar, weddings
      Red Lion Hotel                    Spalding                15               0        2      -
      Woodlands Hotel                   Spalding                15              20        3      -
      The George at Stamford            Stamford                47              50        3 Restaurant, bar, business centre
      Lady Ann                          Stamford                30               0        2      -
      Garden House Hotel                Stamford                20              60        3 Restaurant, bar, events rooms
      The Crown                         Stamford                17               0            - Restaurant, bar
      Total                                                 1019             1225
      Source: Visit Lincolnshire / Locum Consulting research




9.2   Strategic Issues


      England’s Finest Market Town

      Stamford is one of the most interesting and attractive towns in the South. A former wool
      town, it has retained many of the original old Lincolnshire limestone buildings and is used
      regularly as a period film location. Its accessibility and the proximity of Burghley gives it
      additional allure.

      Despite its relatively small town centre, it is able to sustain 30 pubs and 20 restaurants,
      and it has an interesting and diverse retail offer.




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      It is not clear that the ―specialness‖ of Stamford, and the potential which that brings with
      it, is fully reflected in the way that the town is dealt with in terms, in particular, of
      treatment of the public realm, and also that it is marketed as effectively as it might be.

      The same sort of analogies and comparisons that are discussed in the section on Louth (See
      section 7.2.1) apply, only perhaps more so.

      Because the matter is not central to this study, we have not examined it in detail, but
      there may be a particularly strong case for the development of a ―Place Strategy‖ for
      Stamford that, in conjunction with the community, tries to encapsulate what makes it
      special both for people who live there and for potential visitors, and what could be done
      to make more of that specialness.

      Part of that exercise could be a consideration of the type of hotel development that might
      be appropriate. It is possible, for example, that Stamford is a place where a budget hotel
      might compromise the sense of ―specialness‖.



9.3   Development Opportunities


      Stamford

      Our view is that an optimal type of development in Stamford would be an up market town
      house style hotel, preferably with a spa and with a quality functions offer. This could
      either be part of a small up market group (such as Abode or Hotel du Vin) of a destination
      independent hotel.


      Figure 46: Vincent Hotel, Southport




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The Vincent has been developed by a businessman who had achieved success
with the town’s only Michelin starred restaurant. The hotel is located in a
prime site at the heart of Southport’s fine Lord Street. It has instantly
become a “hip” destination. The restaurant is typically full at both lunch and
dinner. It includes a club which stages an exceptionally innovative programme
of events, including hosting famous artistes. Sefton Borough Council played an
active role in encouraging the development and helping with site acquisition
and planning.


The most immediate opportunity is for the development of the Lady Anne‘s Hotel,
something which the owners, the Burghley Estate, are keen to achieve. The situation is
sensitive because the current operators, the Hastings family, have managed the property
for many years. At present, however, they have a very short term lease and are
understandably unwilling to invest. The owners meanwhile are not prepared to grant a
longer tenure because they believe that more should be done with the site. To break the
deadlock, a suitable developer and possibly operator will need to be found. The property
is very well located on the junction of the A16 and the B1081 and is the first building that
is seen on entering the town. The building dates back to 18th Century and is set in 3.5
acres of woodland. The hotel currently offers 26 bedrooms, a restaurant and some
meeting rooms. A development scheme has been produced on behalf of the owners which
retains the original façade and extension behind bringing the total rooms to 50. There are
no developers interested at present and although the site is not big enough to be
attractive to the bigger companies, it could be suitable for a boutique brand in the Hotel
du Vin mould.

In addition, two potential development sites have been identified at the Cattle Market and
Welland Quarter. Masterplans are needed for both areas and once produced could kick
start progress. Either could potentially incorporate a hotel of the nature of the Vincent.

The Cattle Market site is on the river, adjacent to the railway station. It is owned by
South Kesteven District Council. It is used as a car park and although there are no defined
plans for the area at present, Waitrose has recently expressed an interest. There may be
some flood risk although the consultants acting for Waitrose state that these are easily




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overcome. It would perhaps allow the opportunity for a high quality new build of the type
of the Vincent in Southport.

The Welland Quarter is a 12ha site also on the river, which has been designated as an
Opportunity Area by South Kesteven District Council. The site is in multiple ownership and
is defined as suitable for a major new ‗residential, retail, employment and leisure‘
scheme. The time frame is seen as a 10 to 15 year opportunity.



Grantham

Demand in Grantham is also mainly from business travellers and although events generate
demand at certain times, occupancy generally is significantly better during the week.

There are a number of plans for the town, including two Growth Point sites which may add
to the demand from business users, although it is unlikely that they will make any
significant difference to the overall need in the short to medium term.

Gillespies have produced a masterplan for the town centre which has mapped out
potential uses for a number of sites which include additional office and residential
accommodation. There are also sites identified for hotel provision which is probably suited
to budget accommodation. It would seem, however, that the optimal type of development
might be a niche above – a full service hotel in the 3.5 - 4 star range.


Figure 47: Ramada Plaza Hotel, Southport




A second hotel to have opened recently in Southport is a 133 room Ramada
Plaza. It was built by Liverpool based Neptune Developments and includes a
separate restaurant complex. An offer of this nature would probably be
popular in Grantham and give the hotel offer in the south of the county an
element of variety that is currently missing.


The Grantham Station Approach site is in a prominent location next to Grantham Station.
GVA Grimley has been appointed to produce the development brief which will be available
next year. The uses they have identified include high quality office use with some ancillary




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residential and retail, and a hotel site. The total site size is 5ha of which 25,000 sq ft has
been identified for the hotel development at the town centre end of the plot. Although
work is still being done on the development brief, GVA Grimley are of the opinion that the
opportunity would work well for a premium budget style hotel that catered for business
and some leisure use. The opportunity may suit a Jury‘s Inn or similar brand.

The site of the former Grantham Canal Basin has also been designated as a Growth Point
priority and a mix of uses including residential, office, leisure and F&B have been
identified. The total footprint of the site is 28ha and is in multiple ownership including
British Waterways, Lincolnshire County Council and South Kesteven District Council. British
Waterways have begun strategic site acquisition within the designated area. Although the
site is intended to have a strong leisure component, it is probably a longer term
proposition, unlikely to be realised within the next 10 years.



Sleaford and the estate villages

Sleaford is also largely dependent on business tourism, although this may be due partly to
a lack of suitable hotels for leisure uses.

There are a number of attractive estate villages between Spalding and Lincoln which
could, with suitable accommodation, be attractive for weddings or residential corporate
meetings.

There are several potentially suitable properties on the market, which could be converted
to country house hotels. Unfortunately there are very few developers interested in this
style of property currently and finding an interested company would probably prove to be
very difficult. An exceptional property might be suited to a spa.

There are two potential opportunities however which are worthy of further attention and
where accommodation could potentially be part of a mixed use, independent orientated,
destination development.

Blankney is a lovely estate village between Sleaford and Lincoln which has a golf course
and cricket pitch but no visitor accommodation. The estate hall has been demolished but
the original stables remain, now unoccupied and partially derelict. The properties would
be ideal for a courtyard of craft shops and cafes which would provide a focus for visitors.
There may also be opportunities to add a small hotel on the site. It would almost certainly
require public funding to restore the buildings and develop the necessary infrastructure.




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Figure 48: Blankney Estate Stables




Blankney is an attractive estate village about 15 miles north of Sleaford and
10m south of Lincoln. It has a private golf course (which accepts visitors),
cricket pitch and village green. There is no other accommodation in the
village. The stables are privately owned by a local family who have
approached the council about selling the property. The buildings are in a poor
state and are semi derelict. There is no house attached (the Hall burnt down
in the 1960s) although there are other buildings near by. The buildings would
be suitable for a courtyard development of craft shops and cafes. There may
also be an opportunity for a small hotel on the surrounding land.


The second opportunity is at Sleaford Maltings, a magnificent range of listed buildings that
could be a destination of exceptional quality. The developers, Gladedale, have identified a
mix of uses for the site but would be interested to discuss the opportunities for a hotel
within the complex.




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Figure 49: Sleaford Maltings




The Maltings, or Bass Maltings, in Sleaford, were built in the early C20th and
have been disused since the 1960s. The total footprint of the buildings is
500,000 sq ft. This includes eight former malthouse buildings, three of which
have been fire damaged. There are a number of other ancillary buildings on
the site. It is grade II listed. Suitable uses identified in a Supplementary
Planning Document include retail, leisure, culture, residential, business and
employment. Gladedale have owned the property since 2006. They are looking
to retain the leasehold and sub let. Their plans include a mixed-use
development with residential, office and healthcare use. There is a new relief
road being built so they anticipate passing trade. There is potential to
incorporate a hotel into the complex and Gladedale would be interested to
consider how this could be added to the existing mix. The unusual nature of
the site and availability of existing buildings and land could be suitable for a
range of different types of property including a premium budget hotel or a
boutique style hotel. The optimal type of hotel would depend on the nature
and positioning of the rest of the development.




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Figure 50: Staveley Mill Yard, Cumbria




Staveley Mill Yard is a family owned rural business park that has been
developed into a mixed use “village” of independent businesses. The
converted timber mill is occupied by a range of independent businesses which,
typically, produce product on site for sale elsewhere, but also sell to visitors
to the yard. It includes a cycle superstore, a micro brewery and a popular
bistro. Many of the businesses are food-orientated and there is a cookery
school. It has a particular appeal to a “cosmopolitan” audience and is thriving
as a destination despite undertaking no marketing and being in a location that
is somewhat out of the way (albeit it is easy accessible from the main road
into the Lake District). The owners have plans for a 14 bed “apart-hotel” that
is aimed to serve a combination of the small businesses in the area and
tourists who are particularly interested in cycling and walking. There are
many other examples of attractive and successful developments of this ilk
around the country such as Snape Maltings in Aldeburgh and Salts Mill in
Bradford (which has similarity in “feel” to Sleaford Maltings).




Spalding

There is a site at Springfields that could be suitable for a conference hotel property.




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The King family currently owns and operates two hotels in the area, Cley Hall and
Woodlands. They have ambitions to develop two more properties in sites they own, both
off the A16. The first would be a budget accommodation, the second potentially a four
star property with business facilities.

The two King sites are well located and may be attractive to branded properties which
could operate under a franchise.


South Holland

The future need in the area is likely to be for more branded accommodation which would
cater primarily for business users but would also provide more family rooms when these
are needed.

There are a number of factors that are likely to combine together to create significant
future hotel demand. The growing number of jobs and employment has grown in South
Holland by 64% in the last 10 years and a critical mass of investment in tourist attractors is
planned to include Red Lion Street, the Fens Waterway Link and the Butterfly Park. There
are also significant confidential infrastructure projects and demand from the Holbeach
University Campus.

These equate to good future demand growth over the next 3-5 years.


The Bridge Hotel, Sutton Bridge near Spalding

This is an existing hotel overlooking the bridge which was renovated recently. It went into
receivership about four months ago. It is apparently a viable property if a new owner or
financer/ operator could be found.




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Figure 51: The Bridge Hotel




The Bull Hotel, Long Sutton

The building is very well located in the centre of the village. The property and location
appear to be suitable for a stylish Inn or pub with rooms. There would not be sufficient
space for a major development. We understand the hotel is in the final stages of gaining
planning approval.


Springfields Shopping and Garden site, Spalding

There is a site available as part of the Springfields Shopping development that South
Holland Council consider suitable for conference hotel development. Exact details of the
site are unknown but there is still significant latent demand.


Boston

Modus are developing a mixed use retail scheme on an 11 acre site in West Street in the
town centre. It will contain mainly high street branded stores with a few independent
units. There is also residential use and a supermarket. It is due to open in 2011 or 2012.
There may be potential for a hotel within the development. The most obvious candidate
would be another budget hotel, but it would de good for Boston as a destination if it was
able to attract a high range brand or townhouse style independent.


The Fens

The Fens has a highly distinctive sense of place. It has a niche tourism offer of,
potentially, some attractiveness. The main ingredients of the offer would seem to be
related to ―getting away from it all‖, being able to enjoy pleasant market towns that do
not feel ―touristy‖, to be able to cycle and walk in a family friendly environment, and to
be able to enjoy good food in pleasant pubs and restaurants.




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9.4   Recommended Actions
      •    Work with the Burghley Estate to investigate optimal possibilities for development of
           the Lady Anne‘s Hotel.

      •    Consider up market hotel uses in development briefs for the two key development
           sites in Stamford.

      •    Open discussions with the owner of Blankney Stables about the possibility of a mixed
           use destination orientated development there. Assistance could be provided to secure
           funding to restore the buildings and bring them back in to use.

      •    Similarly, discuss with Gladedale the possibilities for more destination orientated uses
           in the Sleaford Maltings, perhaps including a hotel.

      •    Help to facilitate development on the other sites identified.

      •    Give priority to assisting the development of a small rural apart-hotel in the Fens as
           part of the Hotel Excellence programme.

      •    Engage with Modus to explore options for hotel within the West Street development.




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                                    Appendices




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10. Using this Report
    The purpose of this guide is to enable the local authorities of Lincolnshire to understand
    their hotel offer and attract the most suitable hotel investment to improve the overall
    accommodation offer of the county.

    The following is a suggestion as to how it can be used:

    1    Read and understand this report. It explains the supply and demand context of each
         local authority area and the county as a whole

    2    Identify the most suitable and realistic hotel development opportunities. We have
         listed our recommended sites in this report

    3    For each site, collect all the information that a potential hotel developer / investor
         would require

         — Total land size of the site
         — Percentage of the site that can be built on
         — Current use of the site
         — Land use zoning and planning permissions for the site. How many stories would be
               allowed?

         — Description of the location
         — Description of              connectivity       and     access.   How   close   is   it   the   city
               centre/station/main road/major visitor attraction/business park

         — Suggestions on the type of hotel that could be developed. See our
               recommendations for each area.

         — Suggestions on the facilities of the proposed hotel, range of number of rooms,
               restaurant, bar, conferencing facilities, leisure facilities etc.

    4    Layout all the information as a one page summary

    5    Add a map – clearly mark the site on a local orientation map

    6    Add photos – include two or three images of the site from all angles

    7    Gain an understanding of hotel feasibility studies. In order to borrow the money from
         a bank to build a new hotel, or to attract a branded operator, the developer needs a
         ―Market and Financial Feasibility Study‖ to demonstrate the hotel is a sound business
         proposition. It‘s a business plan for a hotel.

         Here is a generic contents page of such a report:

         — Executive Summary
         — General, Economic & Tourism Background of the area



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     — The Site – Overview
     — The Hotel Market in the area (Supply and Demand)
     — The Proposed Facilities and our Recommendations on these
     — Analysis and Financial Projections
     — Development Cost Estimates
     — Cash Flow and Feasibility Analysis
8    Contact developers and investors and market the specific sites mentioned.




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11. Major Hotel Operators and their potential for
    Lincolnshire
       This section summarises the main active hotel operators and developers in Britain and
       assesses the likelihood of them being interested in the opportunities that have been
       identified in Lincolnshire.



11.1   A B Hotels
       The Bryanston Court and Concorde hotels in London were purchased in 2002. These hotels
       are now being converted into a new 80 bedroom hotel to be called the Arch and due to
       open in 2009. Number of operational Hotels: 2. Under construction: 1.



       Lincolnshire potential:

       Limited



11.2   ABode Hotels
       Mid to upscale market boutique style hotels. Currently has properties in Exeter,
       Canterbury, Glasgow, Manchester and is currently developing in Chester, due for opening
       in 2009. Actively reviewing potential developments in 2 other locations.

       Number of operational Hotels: 4

       Under construction: 1



       Lincolnshire potential:

       Would be a good brand fit with Lincolnshire Uphill and, in particular, the Judges
       Lodgings/White Hart Car Park site, and also with Stamford.



11.3   Apex
       Scottish based operator of Malmaison style hotels with three in Edinburgh, one in Dundee
       and one in the City of London. Three new hotels are planned in Edinburgh and London,
       opening during 2009 and 2010 respectively.

       Number of operational Hotels: 5

       Under construction: 3




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       Lincolnshire potential:

       Unlikely to be interested, but theoretically a good product for Uphill Lincoln and
       Stamford.



11.4   Accor
       Huge French company that has a portfolio of brands including Formula 1, IBIS, Novotel,
       Mercure and Sofitel. Most of their units in the UK are Novotel (4 star), Mercure (, and IBIS
       (budget). They are sometimes combined in the same development.              They have the
       following hotels in the UK (136 in total):


       Figure 52: Accor Hotels in the UK

       Brand                           Hotels

       Novotel                         31

       Mercure                         30

       IBIS                            51

       Etap Hotel                      16

       Formula 1                       5

       Sofitel                         3



       Lincolnshire potential:

       Novotel or Mercure would be good candidates for Lincoln. Opportunities for Ibis in other
       county towns.



11.5   Arora International Ltd
       The company purchased in 2005 the Le Meridien at Gatwick which is now run as a Sofitel.
       In 2008 they purchased the Renaissance at Gatwick which has been rebranded as a
       Mercure. They are operating the 600 bedroom Sofitel which opened at London Heathrow
       Terminal 5 in 2008. In association with Surrey CCC they will manage the new 170 bedroom
       hotel to be built at the Kennington Oval. They have purchased a number of sites near
       airports from the Airport Property Partnership which could be used for developing new
       hotels.

       Number of operational Hotels: 7

       Under construction: 0




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       Lincolnshire potential:

       Unlikely. They specialise in airport properties.



11.6   Aston Hotels Ltd
       The company is developing a budget brand called Aston. The first was opened near
       Darlington in 2005. This was followed by Dumfries in 2006 and Rotherham in 2008. A
       further Aston will open at Port Talbot in 2009.

       Number of operational Hotels: 3

       Under construction: 1

       Limited potential for Lincolnshire



11.7   B D L Hotels Ltd
       B D L Hotels Ltd is a Company building & operating Express by Holiday Inns, Crown Plaza
       and Ramada Encores. They have 13 hotels across the country, and 6 under construction.
       They plan to build around 40 new Ramada Encore hotels during the next 6 to 7 years.
       These will be operated by an associated company Ramcore Hotels.

       Number of operational Hotels: 13

       Under construction: 6



       Lincolnshire potential:

       BDL would be a good candidate for Lincolnshire but they have been hit by the downturn
       and may not look at new projects for a period of time.



11.8   Ballymore Properties Ltd
       Let the 169 bedroom hotel which opened in 2007 in New Providence Wharf in London to
       Radisson Edwardian. In conjunction with British Waterways they are developing a hotel at
       Wood Wharf near Canary Wharf. They are also building a new hotel at Snow Hill station in
       Birmingham. Another hotel has just started construction at Hayes Scrapyard in Middlesex.

       Number of operational Hotels: 0

       Under construction: 3

       Limited potential for Lincolnshire




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11.9    Bannatyne Hotels
        The company has hotels in Hastings, Darlington and Durham. They will be developing a
        new 50 bedroom Bannatyne in Thorpe St Andrews, Norwich.

        Number of operational Hotels: 3

        Under construction: 1

        Limited potential for Lincolnshire



11.10   Beck Conroy Consulting
        They currently have one operating hotel with 2 under construction. The company
        purchased the Holiday Inn in Sheffield in 2006. They have submitted plans for 2 new hotels
        a 198 Crowne Plaza and a 161 Holiday Inn Express both to be built on the site of the old
        Smithfield Market in Sheffield. These will be operated by Intercontinental Hotels.

        Number of operational Hotels: 1

        Under construction: 2

        Some potential for Lincolnshire



11.11   Bespoke Hotels
        Have a national spread of properties, including hotels in: Edinburgh, Mellor–Lancashire,
        Lavenham, Winchester, Maidenhead, and Taunton. The portfolio includes 15 hotels, 2
        hotels under construction, a golf club and a members club. They have properties under
        construction in Liverpool and Surrey.

        Number of operational Hotels: 15 (excluding members club)

        Under construction: 2



        Lincolnshire potential:

        Possible.



11.12   Blackstone Group
        American company which previously owned Savoy Hotels plc. They bought Hilton Hotels in
        2007. They are proposing to build a new Waldorf Astoria in the City of London. They also
        hope to open a new Conran hotel.




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        Lincolnshire potential:

        Below their radar



11.13   Butterfly Hotels Ltd
        The company was taken over by Crowne Hotels in 2004. The 4 original hotels were re-
        branded as Ramada. In 2006 they purchased the Cromwell hotel at Stevenage and the
        Holiday Inn at Castle Bromwich re-branded as an Express by Holiday Inn. In 2007 they
        purchased the Citilodge in Nottingham re-branded as a Days Inn. A Holiday Inn in Banbury
        has just been opened

        Number of operational Hotels: 8

        Some potential for Lincolnshire



11.14   Campanile (UK) Ltd
        The company was purchased in 2005 by Starwood Capital. New hotels opened in 2003 in
        Glasgow and Leicester. Bradford was converted from Novotel and Swindon from an Ibis.

        Number of operational Hotels: 19

        Under construction: 0

        Some potential for Lincolnshire



11.15   Carillion Plc
        The company was formerly Alfred McAlpine plc and was taken over by Carillion in 2007.
        They are developing, in a joint venture with New World Leisure Operations, a number of
        Ramada Encore Hotels. Work has started on new hotels at Crewe and Barnsley, NEC House,
        Birmingham and Newport are planned to start in 2008.

        Number of operational Hotels: 1

        Under construction: 4

        Some potential for Lincolnshire



11.16   Cedar Court Hotels
        The company purchased the former Hilton in Huddersfield and also the St Pierre in
        Wakefield in 2001. The former Hanover Hotel in Bradford was purchased in 2003. They are
        currently planning a 107 bedroom hotel to be built at the former railway headquarters at
        Station Rise in York.



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        Number of operational Hotels: 4

        Under construction: 1

        Some potential for Lincolnshire



11.17   Centre Parcs UK Group
        The company was purchased by Arbor in 2003. They have 4 major resorts in the UK. The
        Cheltenham Spa was purchased in 2004. They submitted planning for a new resort near
        Woburn. This was initially refused but has now been approved by the Local Government
        minister.

        Number of operational Hotels: 4

        Under construction: 1

        Some potential for Lincolnshire



11.18   Centre Island Hotels
        The company which was McLean Group reopened the Holiday Inn Garden Court at Ashford
        in 2003 as a Holiday Inn. They operate Crowne Plaza, Holiday Inns and Express by Holiday
        Inns. They are operating the new Crowne Plaza which has just opened in Manchester. They
        are building an Express by Holiday Inn also in Manchester which is due to open in early
        2009.

        Number of operational Hotels: 10

        Under construction: 1

        Some potential for Lincolnshire



11.19   Chardon Management Ltd
        The company operate 4 hotels in Scotland and through Stardon UK they operate 7 former
        Hilton Hotels. A new Express By Holiday Inn has opened in Edinburgh. They are building in
        conjunction with Bluebird Holdings a Holiday Inn at Stevenage and work will start soon on
        an Express By Holiday Inn at Leeds.

        Number of operational Hotels: 14

        Under construction: 1

        Some potential for Lincolnshire




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11.20   City Inn Ltd
        The company opened a new hotel in Manchester in 2007. A 330 bedroom hotel is under
        construction in Leeds due to open in 2009. A 600 bedroom hotel is planned adjacent to the
        Tower of London and a third new hotel is a possibility for Edinburgh.

        Number of operational Hotels: 5

        Under construction: 3

        Limited potential for Lincolnshire – preference for larger properties.



11.21   Clayton Hotels Ltd
        The company which is a sister company of Clayton Homes has plans to create a chain of
        Country House hotels. The first purchase was Gwrych Castle in Abergele and planning is
        being sought to convert this into a 5 star 90 bedroom hotel.

        Number of operational Hotels: 1

        Under construction: 1

        Limited potential for Lincolnshire



11.22   Corinthia Hotels International
        This company will be running the revamped Metropole hotel near Trafalgar Square for
        International Hotel Investments which is another Maltese company. Corinthia will also be
        managing the Ramada Encore being built by Vermont Developments in Liverpool.

        Number of operational Hotels: 2

        Under construction: 2

        Limited potential for Lincolnshire



11.23   Crerar Hotels Ltd
        The company was known as North British Trust Group. In 2006 they purchased the
        Scotlands at Pitlochry. They also own the Glencoe hotel at Glencoe and this is being
        converted into an 80 bedroom hotel due to open in 2009. They took over 13 former
        Swallow hotels belonging to REIT Asset Management and are managing these. They are
        also managing 5 hotels for PRUPIM. They purchased the Craiglynne hotel in Grantown on
        Spey in 2007.

        Number of operational Hotels: 9

        Limited potential for Lincolnshire



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11.24   Carlson (Park Plaza brand)
        Have invested in Cardiff, London, Leeds, Cardiff and Nottingham. Looking at further
        development in large city areas and at developing the Park Plaza Club brand in 'second
        city' locations. These are modular constructions - 96 & 52 room models with large rooms.
        There are currently 9 Park Plaza Hotels in the UK.

        Number of operational Hotels: 9

        Under construction: 1



        Lincolnshire potential:

        Possible candidates for Lincoln.



11.25   Cendant – Wyndham Hotels
        The second biggest hotel group in the world by room number with about 6,400 hotels
        under its brands worldwide.             It focuses on franchising. The brands it franchises under
        include:

        •    Days Inn (a.k.a. Days Hotels).

        •    Ramada. The Jarvis group operates the franchise in the UK.

        •    Ramada Encore.

        •    Wingate Inn – The group was launched in the USA 1996 and is now expanding
             internationally, with 12 properties planned. The hotels are mid-price, new
             construction only.

        •    Achieved significant expansion in early 2000‘s with re-branding of former Jarvis hotels
             properties as Ramada hotels

        •    There are currently 112 Cendant hotels across the UK.

        •    Lincolnshire potential:

        New development recently has been limited – unlikely to be a real prospect.

        There is strong interest from BDL (a developer / operator of budget and mid-scale hotels)
        in pushing the Ramada Encore brand.



11.26   City Inn
        Hotels in London, Bristol, Birmingham, Manchester & Glasgow. New 300 room
        developments underway in Leeds (opens 2009) and by Tower of London (2010). Whilst the




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        name implies a limited service product, room rates range from £100 to £200 per night and
        the group was the winner of Best Business Hotel brand 2007.

        Number of operational Hotels: 5

        Under construction: 3



        Lincolnshire potential:

        Would be an excellent addition to the range in Lincoln, but it is more likely that they
        would see Lincoln as being too small and focus on larger regional cities as a priority.



11.27   Dakota Hotels
        Smart Malmaison style hotels. Have properties in Glasgow, near Edinburgh and in
        Farnborough.

        Number of operational Hotels: 3

        Under construction:



        Lincolnshire potential:

        Although an excellent brand, it is unlikely that Lincolnshire would feature on their
        priorities.



11.28   Delancey Estates
        The company is developing a 120 bedroom hotel at Brooklands Circuit near Weybridge. In
        conjunction with Hilwood Resorts they purchased the Bovey Castle in Devon in 2006.



11.29   Doubletree By Hilton
        Hilton Hotel Corporation is introducing this brand to the UK. This is the ―conversion‖ brand
        of Hilton. The first has opened at Cambridge. The Dunblaine Hydro which is being
        converted to Doubletree are owned by Ability Group. The former Patio in Aberdeen is also
        being converted to this brand.

        Number of operational Hotels: 3

        Under construction:

        Lincolnshire potential:

        Possible re-branding opportunities for existing hotels.



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11.30   De Vere: Village Hotels
        The company is currently concentrating on the development of Village leisure hotels.
        Currently 20 hotels, most in ―secondary‖ locations outside of town centres. Have a distinct
        place in the market because of their substantial leisure facilities. They believe that this
        product is comparable to a 4 star standard.

        Number of operational Hotels: 20

        Under construction: 3



        Lincolnshire potential:

        Would be a good fit in Lincoln.



11.31   Eclipse Hotels
        The company has recently opened new hotels at Bristol & Cardiff Airports in 2007. An
        Easyhotel opened in Luton in 2008 and another will open at Heathrow in October 2008. A
        Holiday Inn is under construction at Bristol due to open in July 2009.

        Number of operational Hotels: 5

        Under construction: 2

        Limited potential for Lincolnshire



11.32   Express By Holiday Inn
        Budget hotels part of Intercontinental Hotels Group. Most of the hotels are franchised and
        7 individual groups operate hotels themselves. These are BDL Hotels Ltd, Chardon
        Management, Kew Green Hotels, Meridien Leisure, Morethanhotels, Somerton Hotels and
        Splendid Hotels. New hotels opened at Cheltenham and Folkestone in 2008 and others are
        under construction at Ayr, Dundee & Witney.

        Number of operational Hotels: 49

        Under construction: 5

        Potential for Lincolnshire

        One opening soon in Lincoln – possible future potential for sites like Skegness and
        Gainsborough.




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11.33   Fitzpatrick Hotel Group
        This company operate hotels in New York and Ireland. They have plans to operate a new
        hotel at Waterloo Place in Edinburgh.

        Number of operational Hotels: 0

        Under construction: 1

        Limited potential for Lincolnshire



11.34   Folio Hotels
        Has a UK portfolio of 36 hotels and has recently acquired two new properties in
        Manchester (the 85-room Princess on Portland Hotel in Manchester city centre) and in
        Liverpool (Heywoods Building on Brunswick Street, which it plans to covert to a 36 room
        hotel at a cost of £3.5m). Both hotels will be developed into four star, town house style
        properties.

        Number of operational Hotels: 36

        Under construction: 2



        Lincolnshire potential:

        Not really developers – more owner operator model – might like to acquire an existing
        property.



11.35   Four Pillar Hotels
        All 6 hotels are 4 & 3* AA rated. They were taken over in 2007 by RREEF the real estate
        fund management arm of Deutsche Bank. They opened a new hotel at Cotswold Water Park
        near Cirencester in 2007 and are also planning a                     further new hotel near Didcot in
        Oxfordshire due to start in 2008.

        Number of operational Hotels: 6

        Under construction: 1



        Lincolnshire potential:

        •    Possible for Stamford and Lincoln Judges Lodging.




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11.36   Future Inns Canada
        This Canadian company has plans to develop more 4 star hotels. Cardiff & Plymouth have
        opened and a further hotel is under construction in Bristol due to open in February 2009.
        They are considering building a fourth hotel in Scotland.

        Number of operational Hotels: 2

        Under construction: 1

        Limited potential for Lincolnshire



11.37   G B Building Solutions Ltd
        •    The company is a subsidiary of Gleeson who in conjunction with a company called
             Oxford GB Ltd plan to develop 15 mid market hotels throughout the UK. The first a
             Hilton Garden Inn opened at Luton in 2008. This will be followed by Leeds which is
             due to start in 2008. They are also developing a Staybridge Apart-hotel in Newcastle
             Upon Tyne and starting to build an hotel on the seafront at Margate.

        Number of operational Hotels: 1

        Under construction: 3

        Limited potential for Lincolnshire



11.38   Grange Hotels Ltd
        •    The company has a total of 14 hotels. A new hotel in Bracknell was opened in 2001.
             The Blooms hotel was purchased in 2002. Work has started on a 252 bedroom hotel
             near St Pauls in London and this is due for completion in early 2009.

        •    Number of operational Hotels: 14

        •    Under construction: 1

        Some potential for Lincolnshire



11.39   Guestinvest
        •    The company operate buy to let schemes. The Nest will open in Queens Gardens in
             Paddington London in late 2008. They purchased the former Whitbread Brewery in
             London in 2007 and this is being converted to a buy to let hotel due to open in 2009.
             They have an arrangement with Blakes hotel in London to convert this to a buy to let
             hotel and have arranged a joint venture with the Bank of Scotland which will provide
             similar hotels in a number of leading cities. The first two of these projects will be in
             London. One near Hyde Park and the other in Notting Hill.



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        •    Number of operational Hotels: 6

        •    Under construction: 4

        No potential for Lincolnshire

        •    This company recently entered into receivership.



11.40   Heritage Group
        •    Heritage London & Hanover UK Ltd are developing hotels for Purple Hotels formerly
             Sleep Inns. The first opened at Braintree in 2007 and a second opened at Glasgow
             Airport in 2008. They are also developing 4 Park Inns for Rezidor. Hotels are under
             construction at Peterborough and Rotherham.

        •    Hotels: 10

        Some potential for Lincolnshire



11.41   Hilton Hotels.
        The company took over Stakis Hotels in 2000. They were taken over by US private equity
        group Blackstone in 2007. The Hilton London Paddington & Hilton London Euston are
        owned by London Plaza Hotels. They will be operating the new hotel now being built at
        Wembley Stadium and due to open in 2010. They will also operate the 98 bedroom hotel
        under construction near the Majedski Stadium in Reading which is due to open in 2009.
        They are introducing 3 new brands to the UK. These are Doubletree by Hilton, Hampton by
        Hilton and Hilton Garden Inn. 3 Hilton Garden Inns are being developed by G B Building
        Solutions Ltd. 25 Hampton by Hilton are to be developed by Somerston Hotels. Shiva
        Hotels Ltd will develop 15 hotels including Doubletree by Hilton, Hilton Garden Inn and
        Hampton by Hilton.

        •    Number of operational Hotels: 70

        Under construction:2



        Lincolnshire potential:

        Lincoln and possibly one or two other locations could be suitable for Hampton Inn. They
        are pushing this brand hard and would certainly be interested in any viable opportunities.
        Their interest would be limited to operator and/or franchisor but they have quite a fan
        club of developers.




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11.42   Intercontinental Hotels
        The company, previously Bass and then called Six Continents, operate Express by Holiday
        Inn, Holiday Inn, Crowne Plaza & Intercontinental.                   2 new Staybridge Suite Hotels are
        under construction. One in London is being built by Splendid Hotels and one in Brentford
        by BDL Hotels. These will be followed by 2 new hotels in Birmingham & Newcastle-Upon-
        Tyne in conjunction with Trinity Hotels. The Company are hoping to expand to over 20 of
        these hotels in the next four years. 11 Hotels are operated by Queens Moat House Hotels
        under a franchise agreement. A number of the hotels are owned by small groups. These
        are Centre Island Hotels, Chardon Management, Eclipse Hotels, Firoka Group, Pedersen
        Leisure, QN Hotels, Quinn Hotels, Somerston Hotels and Splendid Hotel Group.



        Lincolnshire potential:

        Holiday Inn Express to open shortly in Lincoln. Crowne Plaza could be possible for Lincoln
        but unlikely. Staybridge is the brand that they are pushing along with Express but they are
        struggling for opportunities. It could work in Lincoln given the Siemens and RAF presence.



11.43   Jarvis Hotels Plc
        The company operate 9 former Hilton Hotels for Norwich Union. They have a marketing
        arrangement with Ramada. The last opening a new 200 bedroom hotel on the site of the
        former Ramada Heathrow and this will open in October 2008.

        •    Number of operational Hotels: 42

        •    Under construction:

        Limited potential for Lincolnshire

        •    Very little development of the brand since the initial agreement. Properties have
             been sold on a sale & leaseback arrangement.



11.44   Jumeirah International
        This Dubai based company took over in 2002 the management of two former Hyatt hotels
        in London. They will be operating a new 262 bedroom hotel in the Beetham Tower at
        Blackfriars in London now under construction and due to open in 2010.

        •    Number of operational Hotels: 2

        •    Under construction: 1

        No potential for Lincolnshire




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11.45   Jurys Doyle
        Multi-national company which originated from the merger of Jury‘s Hotels and PV Doyle
        Hotels – two Irish hotel companies.

        The company is concentrating on pushing its Jurys Inn brand – premium budget positioning,
        but development has slowed recently since the company was acquired from the original
        family owners.

        •    Number of operational Hotels: 17

        •    Under construction: 6



        Lincolnshire potential:

        Possible interest for the right opportunity.



11.46   Kennedy Group
        The company operate Culzean Properties as a joint venture with CUSP. They have the
        Northern Ireland franchise from Intercontinental Hotels to build Express by Holiday Inns in
        the province. The first was opened in 2007 in Antrim and this is operated by BDL Hotels.
        They have started to build a Ramada Encore in Belfast. They have established a joint
        venture company with BDL Hotels called Ramcore Ltd. So far they have secured sites in
        Birmingham, Glasgow, Hemel Hempstead, Ipswich and Warrington and are aiming for 40 in
        total.

        •    Number of operational Hotels: 2

        •    Under construction: 2

        Significant potential for Lincolnshire



11.47   Kew Green Hotels Ltd
        The company which is owned by Moorfield took over in 2005 11 Courtyard by Marriott
        hotels, these were rebranded as Holiday Inn in May 2007. A further Holiday Inn was opened
        at Norwich in 2007. A Courtyard by Marriott is under construction at Gatwick which is due
        to open in early 2009. They have just taken over the former Marriott in Liverpool which
        has been renamed as a Crowne Plaza.

        •    Number of operational Hotels: 19

        •    Under construction: 1

        Significant potential for Lincolnshire




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        •    Company recently completed a re-financing and could be ready to start expanding
             again.



11.48   Legacy Hotels
        The group purchased in 2007 the Quality Snowdonia now renamed the Royal Victoria. They
        purchased 3 hotels from Corus Hotels in 2006.                        They own 2 other hotels which were
        managed by Macdonald Hotels. They took over the management of 3 former Swallow
        Hotels in 2007. They manage 2 hotels for Lloyds Hotel Group and 2 hotels for Cosmopolitan
        Group. They will be operating 2 new hotels for Prestigious Retirement Villages which are
        to be built in Lytham St Annes and Lancaster both due to open in late 2008. They took
        over the management of the Botleigh Grange hotel at Southampton in 2008.

        •    Number of operational Hotels: 17

        Limited potential for Lincolnshire



11.49   MacDonald Hotels and Resorts
        The company purchased Heritage Hotels in 2001. An hotel was opened at Whitchurch in
        Shropshire in 2006. Others were opened in 2007 in Manchester and Tarporley. They will be
        managing the new hotel under construction at Salford City Reds Rugby Club. They have
        entered into a partnership with the Royal Garden hotel in Kensington, London. 23 Hotels
        previously managed for Moorfield Real Estate Fund were transferred to Accors Mercure in
        2007. They have announced plans to expand their presence in London.

        •    Number of operational Hotels: 46

        •    Under construction: 1



        Lincolnshire potential:

        Company is heavily involved with HBOS and as such funding for new developments would
        be questionable.



11.50   Malmaison/Hotel du Vin
        Up market ―boutique‖ chain that now has units in Belfast, Birmingham, Edinburgh,
        Glasgow, Leeds, Liverpool, London, Newcastle, Oxford, Reading. Hotel du Vin properties in
        Bristol, Winchester and Brighton.

        The company was purchased by Marylebone Warwick Balfour in 2002. Liverpool and
        Reading were opened in 2007. They purchased the Queens hotel at Aberdeen and it will




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        reopen with 82 bedrooms in late 2008. They plan a further hotel in London probably at
        Libertys in London and they are also considering Sheffield.

        •    Number of operational Hotels: 11

        •    Under construction: 1



        Lincolnshire potential:

        Hotel du Vin seems to have a great brand fit with Lincolnshire Uphill and, in particular,
        the Judges Lodgings/White Hart Car Park site, and also with Stamford. The company is
        currently for sale and while this process is ongoing it is unlikely that much attention will
        be given to brand expansion.



11.51   Marriott International
        The company took over the UK operations of Whitbread Marriott. The Marriott West India
        Dock is owned by the Yianis Group. In 2007 they sold 47 hotels to Quinlan Private on a
        sale/Leaseback. Marriott have plans to expand their Courtyard hotels with joint ventures.
        A new Marriott is due to open at the Rugby Football Ground at Twickenham in late 2008
        and a Marriott Renaissance is being planned for Birmingham. They will also operate the
        254 bedroom hotel being built at St Pancras in London and which is due to open in 2010.
        They operate the Marriott Victoria & Albert in Manchester and the Marriott West India
        Dock both of which are owned by the Yianis Group.

        •    Number of operational Hotels: 55

        •    Under construction: 3



        Lincolnshire potential:

        Any interest would need to be developer led.



11.52   Marstons Inns & Taverns
        The company was previously Pathfinder Pubs took over the operation of the hotels
        previously operated by Wizard Inns and Wolverhapton & Dudley. They took over Eldridge
        Pope in 2008. They plan to build some dozen new pubs with 40 room accommodation. The
        first two are planned for Weybridge in Cornwall and Telford in Shropshire.

        •    Number of operational Hotels: 55

        •    Under construction: 3

        Limited potential for Lincolnshire



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11.53   Maybourne Group
        The company is owned by Quinlan Private. These hotels were the 3 remaining in the Savoy
        Group after the sale of the Savoy hotel itself in 2005. Claridges is due to have a 40
        bedroom extension and The Berkeley 27 bedrooms added

        •    Number of operational Hotels: 3

        No potential for Lincolnshire



11.54   McAleer & Rushe Group
        This design & construction company carried out a great deal of work for Jurys Inns. Three
        sites at present are being planned are in Gateshead, Portsmouth and Leicester Square
        London which will be operated as a W hotel by Starwood.

        Limited potential for Lincolnshire



11.55   Menzies Hotels
        Operators of 17 hotels, mainly older properties.



        Lincolnshire potential:

        Not a strong brand identity. Original founders sold out to aAim who have since down sold
        the portfolio – little possibility of direct investment and probably not a strong enough
        brand to be called in as an operator.



11.56   Millennium Copthorne:
        Copthorne was purchased by Singapore based CDL Hotels in 1995. They took over the
        management of the 2 hotels at Stamford Bridge owned by Chelsea Village in 2006. A 200
        bedroom hotel is now under construction at the Marina in Southampton. They will be
        operating the new hotel due to be built at Sheffield United Football club in Bramall Lane.
        They will also be operating the new hotel planned by Arena Leisure for the racecourse at
        Doncaster.

        •    Number of operational Hotels: 19

        •    Under construction: 3

        Lincolnshire potential:

        Would be a long shot at best.




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11.57   Morethanhotels
        The company was formerly Oriel Hotels and operate 8 Express By Holiday Inns. They took
        over Foremost Hotels Ltd in 2005. They were taken over by JER Partners in 2007. 2 new
        hotels are planned for Birmingham NEC and they are operating a new hotel which opened
        in Hull in 2008. They purchased the Express By Holiday Inn in Stevenage in 2008

        •    Number of operational Hotels: 12

        Significant potential for Lincolnshire



11.58   Niche Hotels Ltd
        The company opened a 64 bedroom hotel in Cardiff in 2005. 22 bedrooms were added to
        the Wyck Hill House Hotel in 2007. The Langley Park is under construction in London and
        will be opened in early 2009.

        •    Number of operational Hotels: 3

        •    Under construction: 1

        Limited potential for Lincolnshire



11.59   Pantin Hotels
        The company has just opened their first hotel in Leeds. They also have plans for a second
        hotel also in Leeds which will open in 2010.

        •    Number of operational Hotels: 2

        •    Under construction: 1

        Limited potential for Lincolnshire



11.60   Park Inn
        The company is part of Rezidor SAS. They took over the operation of 9 former Queens Moat
        Hotels owned by Jefferson Hotel LLP in 2006. The Moathouse in York was converted to a
        Park Inn in 2006. They have plans to create a number of new Park Inns.            Edinburgh,
        Peterborough, Grimsby and Rotherham are being built by Heritage Group and are listed
        under that company. Belfast, Glasgow East Kilbride, Manchester Cheetham Hill,
        Manchester Old Trafford, Glasgow Springfield Quay, Aberdeen, Newry and Sawley near
        Long Eaton are under construction and Canterbury is due to be started soon. They operate
        the Park Inn at St Helens, and for former Bonnington in London for W G Mitchell. Also the
        Park Inn at Heathrow owned by the Yianis Group.

        •    Number of operational Hotels: 19



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        •    Under construction: 9

        Significant potential for Lincolnshire



11.61   Peel Holdings Ltd
        This is a large property development company which owns four airports. Currently they are
        developing new hotels at John Lennon Airport in Liverpool, Robin Hood Airport Doncaster
        and Gloucester Quays in conjunction with British Waterways.

        Limited potential for Lincolnshire



11.62   Prem Group
        The company has a franchise to develop Cendant Hotels in Ireland and the UK. A hotel
        opened in Sheffield in 2007. 3 Hotels probably Days Inns are planned for Edinburgh, Leeds
        and Manchester. They purchased the Metro near Birmingham in 2006 and this has been
        converted to a Ramada. They operate 6 Premier Serviced Apartments in the United
        Kingdom.

        •    Under construction: 3

        Limited potential for Lincolnshire



11.63   Premier Inn
        Part of Whitbread Hotel Co the company has changed its name from Premier Travel Inns.
        Roadchef Lodges were incorporated in 2001. Premier Lodge was amalgamated in 2005.
        They have announced plans to build 6 new Premier Inn hotels in London. They have
        purchased 3 hotels from the Real Hotel Company.

        •    Number of operational Hotels: c. 500

        •    Under construction: c. 15



        Lincolnshire potential:

        A strong candidate for any budget style opportunities countywide.



11.64   Principal Hayley Hotels
        Operate 7 hotels in the four star range, mainly larger, older properties, including
        properties in Edinburgh, York, Leeds, Selsdon Park, Shropshire, Cardiff & London. Backed
        by private equity firm, Permira who have ambitions to make the company a £1bn



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        enterprise. Acquired the Hayley Conference Centre group and are now major players in
        the provincial conference centre market.

        •    Number of operational Hotels: 19



        Lincolnshire potential:

        Opportunity based.           Business model is more geared to acquisition of existing cash
        generating businesses than development but could be an end-buyer for a suitable
        development – particularly if there was a strong conference / training centre angle.



11.65   Q Hotels
        19 hotels in 4 star market, all of them heritage properties. Mainly owned by private equity
        company Alchemy Partners. The portfolio includes the Midland in Manchester, the Queens
        in Leeds, Chesford Grange in Warwickshire and the Park Royal in Warrington. It added that
        it is set to continue its rapid growth over the next 12 months.

        •    Number of operational Hotels: 21



        Lincolnshire potential:

        Opportunity led but a possibility.



11.66   Radisson Edwardian
        The Mayfair Continental was purchased in 2003 and has been extensively refurbished. A
        new hotel was opened at New Providence Wharf in London in 2007. Syon Park will open in
        2009. A further new hotel is planned for Coventry.

        •    Number of operational Hotels: 13

        •    Under construction: 2



        Lincolnshire potential:

        Unlikely. Their hotels are too large and up market to fill either of the gaps in Lincoln for
        mid market full service and branded townhouse style.



11.67   Radisson SAS
        A Radisson SAS opened in St Helier in 2007. Durham and Bristol are due to open in early
        2009. Cardiff is also being built and will open later in 2009. Others will be started soon at



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        East Midlands Airport, Rotherham and Brighton. They intended to develop a new brand
        Radisson Missoni in partnership with Italian fashion house Missoni. The first of these is now
        under construction at the former Scottish & Newcastle Brewery in Edinburgh.

        •    Number of operational Hotels: 18

        •    Under construction: 7

        Limited potential for Lincolnshire



11.68   Real Hotel Company
        Has 11 hotels under the Purple hotels brand (it changed them from Sleep Inn in February
        2008). Sites include Baldock, Birmingham, Cambridge, Derby, Doncaster, London,
        Peterborough, Shrewsbury and Tewkesbury and new developments at Stansted and
        Glasgow Airport. The hotels are positioned just above the lodge section in the £55 - £85
        per night range in the regions.

        •    Number of operational Hotels: 11 (Under Purple Brand)



        Lincolnshire potential:

        Possible for budget hotel sites in the county.



11.69   Regency Hotel Group
        This Irish company own 5 hotels in Ireland and 2 in the United Kingdom. They purchased
        the Gillette office headquarters in Isleworth in 2006. Initial plans to build a 505 bedroom 5
        star hotel on the site were rejected in early 2007 but it is hoped that the problems have
        been overcome and that building will start in early 2008

        Number of operational Hotels: 4

        Limited potential for Lincolnshire



11.70   Rezidor/Carlson (Radisson SAS)
        The Rezidor Hotel Group currently has about 300 hotels under management. It manages
        selected Carlson brands in Europe, the Middle East and Africa: Radisson, Park Inn, Regent
        and Country Inn. www.rezidor.com.

        Radisson SAS Hotels & Resorts is part of the Rezidor Hotel Group. It currently operates
        about 170 hotels in Europe, the Middle East and Africa. It has recently opened new hotels
        in St Helier, Durham and Cardiff.

        Operating Radisson SAS: 24 (2 more opening in the near future)



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        Park Inn: 21

        Country Inn: 1



        Lincolnshire potential:

        Would probably also not see enough market in Lincoln, but is an excellent brand and would
        be a great addition to the Lincoln offer. Worth trying to interest them if there is a good
        scheme.



11.71   Shiva Hotels
        This India based company has no official Head Office in London. However they can be
        reached via the Ramada in Docklands which they own. They purchased the Monkbar hotel
        in York in 2008. They have concluded an agreement with Hilton Hotels Corporation to
        develop 15 new hotels in the UK. These will be Hilton, Hilton Garden Inn and Hampton by
        Hilton. The first 4 sites to be developed will be near Heathrow terminal 5, Derby and 2
        sites in Leeds.

        •    Number of operational Hotels: 4

        •    Under construction: 4

        Significant potential for Lincolnshire



11.72   Sleeperz Hotels Ltd
        The company are developing new hotels on land belonging to Network Rail. The next
        opening is at Cardiff in late 2008. This will be followed by Newcastle-Upon-Tyne &
        Manchester in 2009.

        •    Number of operational Hotels: 0

        •    Under construction: 1

        No potential for Lincolnshire



11.73   Somerston Hotels Ltd
        The company which was Stannifer Hotels operate Express By Holiday Inns, Holiday Inns and
        Ramada. They purchased 13 Express By Holiday Inns from BDL Hotel Group in 2005. They
        have a development agreement with Hilton Hotels Corporation to develop 25 new Hilton
        Hampton hotels in the UK within the next 5 years. They are building an Express By Holiday
        Inn at Lincoln which is due to open in December 2008.

        •    Number of operational Hotels: 32



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        •    Under construction: 1

        Some potential for Lincolnshire



11.74   Splendid Hotel Group
        The company operate Holiday Inn, Express by Holiday Inn and Comfort Inn. They have just
        signed an agreement with Easyhotel to develop 10 new hotels in the UK. They already
        operate the Easyhotel in Victoria, London. They will be operating a new Intercontinental
        Staybridge Suite which is being built at Suffolk St on Bankside in London. Another hotel is
        being developed in St Albans.

        •    Number of operational Hotels: 15 (12 Branded)

        Some potential for Lincolnshire



11.75   Starboard Hotels
        The company has just opened an Express by Holiday Inn in Burnley. This will be followed
        by a 200 bedroom Holiday Inn Express at Edgbaston in Birmingham. A Days Inn is planned
        for Wetherby and another Express by Holiday Inn for Gateshead.

        •    Number of operational Hotels: 1

        •    Under construction: 3

        Limited potential for Lincolnshire



11.76   Starwood Hotels and Resorts
        US based company owned by Starwood Capital. They operate the Sheraton and Westin
        brands in the UK. Starwood Capital own Campanile & Le Meridien. They will be operating a
        new Westin hotel to be built by Ballymore Properties at the Snowhill station site in
        Birmingham. They are introducing their W Hotels Brand into the UK. The first two will be
        at the former Swiss Centre in London currently being developed by McAleer & Rushe and a
        West Hotels site in Manchester.

        •    Number of operational Hotels: 9

        •    Under construction: 2



        Lincolnshire potential:

        Unlikely. Small possibility of them being a candidate for a golf resort development at
        Gainsbourgh or Woodhall Spa.




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11.77   Thistle Hotels
        Operate 35 hotels in the 3-4 star market, mainly in city centres. The ownership structure
        has become very messy following a string of ownership changes and complex sale and
        leaseback arrangements. These have effectively killed further development of the brand.

        •    Number of operational Hotels: 35

        •    Under construction:



        Lincolnshire potential:

        Poor and weakening brand with little or no potential for further development.



11.78   Travelodge
        The company was bought in 2007 by Dubai International Capital Group. They have plans to
        develop 40 new lodges in the next 15 months. They have purchased 6 hotels from the
        Menzies Group.

        Number of operational Hotels: over 300



        Lincolnshire potential:

        A strong candidate for any budget opportunities countywide.



11.79   Urban Splash
        The company has just reopened the Midland hotel in Morecambe. They have submitted
        plans for a new 100 bedroom hotel on the former Littlewoods site at Edge Lane in
        Liverpool and also plan to develop 2 new hotels at the former Pleasureland site in
        Southport.

        •    Number of operational Hotels: 1

        Under construction: 2

        Limited potential for Lincolnshire



11.80   Von Essen Hotels
        Luxury Family Hotels was taken over in 2006. They have regularly purchased new hotels
        during the past five years. The latest are the Seaham Hall hotel and the Samling. They also
        purchased the Battersea Heliport where work has started on a 70 bedroom boutique hotel.
        They purchased the Amberley Castle hotel near Arundel in 2007



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        •    Number of operational Hotels: 28

        Under construction: 1

        Limited potential for Lincolnshire



11.81   West Hotels
        The company is part of West Properties UK Ltd. They have plans to develop 11 hotels in
        the UK. Two are planned for Manchester on Deansgate and Princess St. Two in Leeds in
        Kirkstall Rd and Bridge St and one on Christchurch Way near the Blackwall tunnel in
        London

        Under construction: 5

        Limited potential for Lincolnshire



11.82   Willow Street Hotels
        The company was originally Quest Hotels. They have plans to build 6 new hotels in the
        next few years. They are considering operating a new hotel on a site owned by Argent in
        the Northern Quarter of Manchester.

        •    Number of operational Hotels: 1

        Limited potential for Lincolnshire



11.83   Yianis Group
        The company owns the Four Seasons hotel at Canary Wharf and purchased the Marriott at
        West India Quay in 2006. They have just bought the Park Inn at Heathrow and the Marriott
        Victoria & Albert in Manchester. They are also involved in the development of the former
        Palace Hotel in Southend-On-Sea which is now under construction.

        •    Number of operational Hotels: 4

        Under construction: 1

        Limited potential for Lincolnshire




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12. Space Requirements for Hotels
    Figure 53 gives an indication of the different sizes of room in different branded hotels.


    Figure 53: Principal UK Hotel Brand Bedroom Size Comparisons
                                  2-3 star                                       3-4 star              4-5 star
    7-10 m2        12 m2        18 m2       22 m2                        24-26 m2                28-32 m2
    easyHotel*     Etap         Ibis        Hampton by Hilton            Crowne Plaza**          Hilton**
    nitenite       Yotel*       Travelodge* Express by Holiday Inn       Hilton Garden Inn       Inter-Continental**
                                            Park Inn                     Holiday Inn**           Marriott**
                                            Premier Inn                  Courtyard by Marriott** Sofitel**
                                            Purple Inn                   Novotel**
                                            Purple Hotel
                                            Ramada Encore
    * Brands may have other room sizes
    **Brands may have suites and larger configurations

    Source: Dexter Moren Associates (2008)

    Each of the major hotel brand operators provide developers with a manual that specifies
    exactly how they would like the hotel to be built and finished if they are to operate it.

    Figure 54 and Figure 55 show the required area schedule for a 4 story 109 room Hampton
    by Hilton, a budget hotel which requires 3,564 m2 of internal area. It needs 119 parking
    spaces and 5,159 m2 site area (0.52 hectares, 1.3 acres).




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Figure 54: Hampton by Hilton – Internal Area
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Figure 55: Hampton by Hilton – External Area
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